Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent. Principal $ 590 Interest rate Date borrowed June 10 5% Date repaid December 12 Exact time Interest Maturity value

Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent. Principal $ 590 Interest rate Date borrowed June 10 5% Date repaid December 12 Exact time Interest Maturity value

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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Question

Complete the following, using exact interest. (Use Days in a year table.)
Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.
Principal Interest rate
5%
590
Date borrowed Date repaid Exact time
June 10 December 12
Interest
Maturity value

Expert Solution

Step 1

Simple Interest can be calculated as = Principle x Rate of Interest x Time Period

Here it is important to understand that date of borrowing is including in time period for interest calculation but date of repayment is not included.

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