Calculate the missing information for the following loan. Round days to the next higher day when necessary. Do not enter units in your answer. Do not round intermediate calculations. Principal Rate (%) Time (days) Interest Method Interest Maturity Value $ 60,000 10.6 Exact $3,800 $63,800
Calculate the missing information for the following loan. Round days to the next higher day when necessary. Do not enter units in your answer. Do not round intermediate calculations. Principal Rate (%) Time (days) Interest Method Interest Maturity Value $ 60,000 10.6 Exact $3,800 $63,800
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Calculate the missing information for the following loan. Round days to the next higher day when necessary.
Do not enter units in your answer. Do not round intermediate calculations.
| Principal | Rate (%) | Time (days) | Interest Method | Interest | Maturity Value |
| $ 60,000 | 10.6 | Exact | $3,800 | $63,800 |
Expert Solution
Step 1
Exact interest method is different from ordinary interest method. The difference is no of days used in denominator of time period.
Under Exact interest method, we use 365 days as denominator.
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