An automotive dealer borrowed $ 8700.00 from the Bank of Montreal on a demand note on May 5. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 5th of each month. The automotive dealer made a payment of $1600 on July 26, a payment of $4600 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 5 was 8% per annum. The rate was changed to 8.3% on August 1 and to 8.6% on October 1. What was the total interest cost for the loan?
An automotive dealer borrowed $ 8700.00 from the Bank of Montreal on a demand note on May 5. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 5th of each month. The automotive dealer made a payment of $1600 on July 26, a payment of $4600 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 5 was 8% per annum. The rate was changed to 8.3% on August 1 and to 8.6% on October 1. What was the total interest cost for the loan?
Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
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An automotive dealer borrowed $ 8700.00 from the Bank of Montreal on a demand note on May 5. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 5th of each month. The automotive dealer made a payment of $1600 on July 26, a payment of $4600 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 5 was 8% per annum. The rate was changed to 8.3% on August 1 and to 8.6% on October 1. What was the total interest cost for the loan?
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