Date May 17 May 21 Date May 17 Transaction amount REFLECTING What could Esmé have done to avoid this additional cost? May 21 $187.50 $104.19 Transaction amount $187.50 $104.19 REFLECTING Do all financial institutions charge the same interest rates for loans? Explain. 3. Esmé had three overdraft transactions in May. Each transaction cost $3, plus interest at 19%/yr, compounded daily. Her paycheque was deposited electronically on May 31. It covered all the overdrafts. a) Complete the chart to determine what Esmé paid. Time 15 d d Time 15 d Total amount A=P(1 + d b) Suppose Esmé had a personal line of credit with interest at 9.5%/yr, compounded daily. Complete the chart. How much interest would she have paid? 1 = $ = $ Total amount A=P(1+ Interest 1=A-P 1 = $ $187.50 Interest 1=A-P $187.50 c) Should Esmé get a personal line of credit? Explain.
Date May 17 May 21 Date May 17 Transaction amount REFLECTING What could Esmé have done to avoid this additional cost? May 21 $187.50 $104.19 Transaction amount $187.50 $104.19 REFLECTING Do all financial institutions charge the same interest rates for loans? Explain. 3. Esmé had three overdraft transactions in May. Each transaction cost $3, plus interest at 19%/yr, compounded daily. Her paycheque was deposited electronically on May 31. It covered all the overdrafts. a) Complete the chart to determine what Esmé paid. Time 15 d d Time 15 d Total amount A=P(1 + d b) Suppose Esmé had a personal line of credit with interest at 9.5%/yr, compounded daily. Complete the chart. How much interest would she have paid? 1 = $ = $ Total amount A=P(1+ Interest 1=A-P 1 = $ $187.50 Interest 1=A-P $187.50 c) Should Esmé get a personal line of credit? Explain.
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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Transcribed Image Text:Date
May 17
May 21
Date
May 17
Transaction
amount
REFLECTING
What could
Esmé have done
to avoid this
additional cost?
May 21
$187.50
$104.19
Transaction
emount
$187.50
$104.19
REFLECTING
Do all financial
institutions charge
the same interest
rates for loans?
Explain.
3. Esmé had three overdraft transactions in May. Each
transaction cost $3, plus interest at 19%/yr, compounded
daily. Her paycheque was deposited electronically on May 31.
It covered all the overdrafts.
a) Complete the chart to determine what Esmé paid.
Time
15 d
-
d
Time
15 d
Total amount
A=P(1 +
d
b) Suppose Esmé had a personal line of credit with interest
at 9.5%/yr, compounded daily. Complete the chart. How
much interest would she have paid?
1 = $
= $
Total amount
A=P(1+1)
Interest
1=A-P
1 = $
= $
- $187.50
Interest
1=A-P
- $187.50
c) Should Esmé get a personal line of credit? Explain.
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