Belinda borrowed $23,500 at simple interest rate of 5.70% p.a. from her parents tostart a business. At the end of 4 months, she paid them $3,800 and $2,700 at the end of9 months. How much would she have to pay them at the end of 14 months to clear thebalance? Use 'now' as the focal date.

Simple interest is the simple interest and there is interest on the principal loan amount and used…

Answered: Belinda borrowed $23,500 at simple…

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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Belinda borrowed $23,500 at simple interest rate of 5.70% p.a. from her parents to start a business. At the end of 4 months, she paid them $3,800 and $2,700 at the end c 9 months. How much would she have to pay them at the end of 14 months to clear the balance? Use 'now' as the focal date.