$10,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact method and by the ordinary method. (Round your answers to two decimal places.) exact method $ __________________ ordinary method $ ___________________ Which method yields the greater maturity value? exact method or ordinary method? Who benefits from using the ordinary method rather than the exact method, the borrower or the lender? the borrower or the lender?
$10,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact method and by the ordinary method. (Round your answers to two decimal places.) exact method $ __________________ ordinary method $ ___________________ Which method yields the greater maturity value? exact method or ordinary method? Who benefits from using the ordinary method rather than the exact method, the borrower or the lender? the borrower or the lender?
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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$10,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact method and by the ordinary method. (Round your answers to two decimal places.)
exact method $ __________________
ordinary method $ ___________________
Which method yields the greater maturity value?
exact method or ordinary method?
Who benefits from using the ordinary method rather than the exact method, the borrower or the lender?
the borrower or the lender?
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