An automotive dealer borrowed $9800.00 from the Bank of Montreal on a demand note on May 8. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 8th of each month. The automotive dealer made a payment of $2400 on July 13 , a payment of $3900 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 8 was 6 % per annum. The rate was changed to 6.6% on August 1 and to 7.1 % on October 1. What was the total interest cost for the loan?
An automotive dealer borrowed $9800.00 from the Bank of Montreal on a demand note on May 8. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 8th of each month. The automotive dealer made a payment of $2400 on July 13 , a payment of $3900 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 8 was 6 % per annum. The rate was changed to 6.6% on August 1 and to 7.1 % on October 1. What was the total interest cost for the loan?
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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An automotive dealer borrowed $9800.00 from the Bank of Montreal on a demand note on May 8. Interest on the loan, calculated on the daily balance, is charged to the dealer's current account on the 8th of each month. The automotive dealer made a payment of $2400 on July 13 , a payment of $3900 on October 1, and repaid the balance on December 1. The rate of interest on the loan on May 8 was 6 % per annum. The rate was changed to 6.6% on August 1 and to 7.1 % on October 1. What was the total interest cost for the loan?
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