In Financial mathamatics I am having problems determining how long the term of a loan is; the question is pasted below I have to determine how long the loan is for, how do I find this? In order to plant Christmas trees in another field, Roy signed a note with a face value of $21,000 at a 7% discount rate. Find the length of the loan in days given that the discount is $408.33. Use banker's interest of 360 days.

In Financial mathamatics I am having problems determining how long the term of a loan is; the question is pasted below I have to determine how long the loan is for, how do I find this? In order to plant Christmas trees in another field, Roy signed a note with a face value of $21,000 at a 7% discount rate. Find the length of the loan in days given that the discount is $408.33. Use banker's interest of 360 days.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: Can you please explain in detail how to work out this problem? Lane French had a bad credit rating…

A: Calculate the interest amount as follows: Interest amount = Loan repaid - Loan taken Interest amount…

Q: Please show all equations and work as needed. Make the correct answer clear. If possible, please…

A: The computation of net amount is as follows:Hence, the net amount of funds from the loan is $511560.…

Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…

A: An installment loan with a $4,600 principal balance is being paid off early after 33 payments out of…

Q: Your monthly payments are due on the 8th of each month, starting October 8. The lender receives your…

A: Principal amount : It is the initial or the total amount that is being borrowed by an individual…

Q: calculate the monthly principal and interest, PI (in $),

A: Re-payment of loan consist of payment of principal and interest. Annuity is the payment of fixed…

Q: are the loan department supervisor ban Being paid task to calculate the rebate fraction, the finance…

A: Given information : Amount financed = $4,700 Number of payments = 36 Monthly payment = $165.33…

Q: Hello! I have a financial problem that I am having issues finding the compounding formula for. The…

A: Compounding refers to the practice of providing interest in which interest is periodically added to…

Q: You owe $2,000 on a credit card that charges 20% interest. You have $2,200 in your savings account…

A: Debt on Credit card = $2,000 Bank balance on Savings account = $2,200 SB Interest rate = 1.69%…

Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…

A: Amount financed (F) = $4700 Number of payments = 36 Payments made = 33 Remaining payments = 3…

Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…

A: Loan amount = $4,700Number of payments = 36Monthly payments = $167.33Payments made = 26To find:…

Q: 1) You are planning on buying a car and see that Toyota is advertising a promotional borrowing rate…

A: Cost of car = $24625Upfront cost if financed = $2000Time to pay the remaining amount = 2…

Q: Today the average undergraduate student is responsible for paying off a $3,500 balance on his/her…

A: APR on credit card: It is the rate that converts the credit card charge into a daily periodic rate.

Q: I want to borrow $700 for ten days from a payday loan store. Here are the terms for the payday loan:…

A: Pay Day loan: A payday loan is a small personal cash loan at a very high interest rate, secured by…

Q: 13. A discounted loan of $3,000 at a simple discount rate of 6.5% is offered to Mr. Jones. If the…

A: The amount of discount depends on the period and interest rate and amount of the loan taken and cash…

Q: For the best terms on a loan or credit card, you need a credit score above 700. To achieve this,…

A: In add on interest method principal amount and interest amount are calculated separately.

Q: Ms. Dory asks Axis Bank to lend her Rs. 100 today. She says she will not be able to pay anything at…

A: The future value is a financial concept that represents the value of a sum of money at a specified…

Q: 12. A bank offers a 272 - day discounted loan at a simple discount rate of 12%. (a) How much money…

A: Simple discount loan is the loan which is given to the receiver after applying a simple discount…

Q: Amir needs 12000 to get his business started as soon as possible. He decides to take a loan from a…

A: Amount needed = 12000 Discount amount = 354.15

Q: A friend asks to borrow $53 from you and in return will pay you $56 in one year. If your bank is…

A: Solution:- When an amount is deposited somewhere, it earns interest on it. The amount initially…

Q: Credit Card Fees and Financing Jarrod has narowed his choice to two credit cards that may meet his…

A: Given: Card A Card B APR 23% 13% Annual Fee ($) 0 23 Monthly balance ($) 401 401

Q: A borrower has two alternatives for a loan: (1) issue a $630,000, 75-day, 6% note or (2) issue a…

A: Interest expense is the cost incurred for borrowing the fund. Interest is calculated on the…

Q: Interest is compounded annually. Solve for the appropriate interest rate using a financial…

A: a.

Q: The cost of a new home is $190,000.00 and the bank requires a 5.8% down payment. What is the amount…

A: House cost = $190,000Down payment = 5.8%

Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…

A: Amount financed = $4600Number of payments = 36Monthly payments = $163.33Payments made = 32To find:…

Q: Use the calculator at https://www.bankrate.com/calculators/auto/auto-loan-calculator.aspx to…

A: Suntrust Bank Interest Rate = 4.34%/12 per month Alliant Credit Union Interest Rate = 2.74%/12 per…

Q: You are the loan department supervisor for a bank. This installment loan is being paid off early,…

A: Amount financed = $4,700 Number of payments = 36 Monthly payment = $162.33 Payment made = 31

Q: If you are trying to build credit by using a credit card, each time you make a purchase with the…

A: Given:

Q: (a) You want to buy a car, and a local bank will lend you $40,000. The loan will be fully amortized…

A: Given Total loan amount is $40,000 The rate is 5%

Question

100%

In Financial mathamatics I am having problems determining how long the term of a loan is; the question is pasted below I have to determine how long the loan is for, how do I find this?

In order to plant Christmas trees in another field,
Roy signed a note with a face value of $
21,000 at a
7% discount rate. Find the length of the loan in days given that the discount is $
408.33. Use banker's interest of 360 days.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

Step 2

Step 3

Step 4

Trending now

This is a popular solution!

Step by step

Solved in 4 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Assume that your team is in business and you must borrow $6,000 cash for short-term needs. You have been shopping banks for a loan, and you have the following two options. A. Sign a $6,000, 90-day, 10% interest-bearing note dated June 1. B. Sign a $6,000, 120-day, 8% interest-bearing note dated June 1. Required 1. Discuss these two options and determine the better choice. Ensure that all teammates concur with the decision and understand the rationale. 2. Each member of the team is to prepare one of the following journal entries. a. Option A—at date of issuance. b. Option B—at date of issuance. c. Option A—at maturity date. d. Option B—at maturity date. 3. In rotation, each member is to explain to the team the entry he or she prepared in part 2. Ensure that all team members concur with and understand the entries. 4. Assume that the funds are borrowed on December 1 (instead of June 1) and your business operates on a calendar-year reporting period. Each member of the team is to prepare…
Subject:- accounting
Watch the Mathematics of Finance video and then answer the question given below. Simple interest loans are generally used for which type of loan? Click here to watch the video. Choose the correct description of a simple interest loan. A. Home Mortgage loans B. Short term loans of less than a year C. Car loans D. Long term loans of a year or more
You have just taken out a five-year loan from a bank to buy an engagement ring. The ring costs $6,200. You plan to put down $1,400 and borrow $4,800. You will need to make annual payments of $1,100 at the end of each year. Show the timeline of the loan from your perspective. How would the timeline differ if you created it from the bank's perspective? Show the timeline of the loan from your perspective. (Select the best choice below.) O A. Year 1 2 3 4 Cash Flow $4,800 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100 O B. Year 1 2 3 4 Cash Flow - $1,400 $1,100 $1,100 $1,100 $1,100 $1,100 O C. Year 1 2 3 4 Cash Flow - $4,800 $1,100 $1,100 $1,100 $1,100 $1,100 O D. Year 1 2 3 4 Cash Flow $6,200 - $1,100 -$1,100 - $1,100 - $1,100 - $1,100
Please show all equations and work as needed. Make the correct answer clear. If possible, please type work so it can be copied. Thank you.
You own a home that was recently appraised for $370,000. The balance on your existing mortgage is $117,350. If your bank is willing to loan up to 70% of the appraised value, what is the potential amount (in $) of credit available on a home equity loan? $ Need Help? Read It Watch It Master It
Money Matters Read and analyze the situation below then answer the questions that follow. Suppose you are a regular employee in a finance company that offers a loan payable through salary deduction. One of its privileges is availing a loan that offers a 5% interest compounded annually for 1 to 5 years. You are thinking to apply for a loan but you wanted to analyze if you can shoulder the monthly payment. Make a loan schedule and fill up an application form that will help you decide the amount of loan that you will make Loan Schedule Loan Amount Maturity Value Monthly Рayment t-1 t-2 t-3 t-4 t-5 P10,000 P20,000 P30,000 P40,000 P50,000 P100,000 P150,000 P200,000 P250,000
Can you please explain me how to solve this in excel
A borrower has two alternatives for a loan: (1) issue a $630,000, 75-day, 6% note or (2) issue a $630,000, 75-day note that the creditor discounts at 6%. Assume a 360-day year. This information has been collected in the Microsoft Excel Online file. Open the spreadsheet, perform the required analysis, and input your answers in the questions below. X Open spreadsheet a. Compute the amount of the interest expense for each option. Round your answer to the nearest dollar. for each alternative. b. Determine the proceeds received by the borrower in each situation. Round your answers to the nearest dollar. < (1) $630,000, 75-day, 6% interest-bearing note: $ (2) $630,000, 75-day note discounted at 6%: $ c. Alternative is more favorable to the borrower because the borrower
If you are attempting these questions ...then solve for both images
Each of the problems below is incomplete. Determine the missing data to solve the problem. 1. To buy a laptop computer, Anita's mother borrowed Php 13,000 at an interest rate of 5% per annum. What is the total amount will she repay? 2. You have deposited in a Savings Bank on June 15, 2015 with an interest rate of 2.5% and have withdrawn it on June 15, 2016. Calculate the simple interest. 3. Calculate the simple interest due on a 95-day loan if the annual interest rate is 5.5%. 4. The interest charged on a Php 5,000 loan is Php 300. Find the simple interest rate? 5. Dondi borrowed Php 12,000 from Mike that charges simple interest. After 3 years he cleared the amount by giving Php16,350| cash and a watch. Find the cost of the watch.
You are considering taking out a loan from the so-called “Tiger B. Shark” finance company. The company’s leaflet states that the loan you plan to take will be settled on a “four-for-five” weekly basis. You ask your friend, who works in the banking industry, for advice on the following issues related to the loan. (a) What is the weekly interest rate charged on the loan as implied by the phrase “four-for-five weekly basis” in the leaflet? (b) What is the effective yearly rate of this loan? Assume that each year has exactly 52 weeks. (The final answer should be rounded to two decimal places in percentage.) (c) Suppose you plan to borrow $10,000 under the terms set out in the leaflet for one year (counted as 52 weeks according to the loan contract). (i) If you make no interest or principal repayments during the period, how much will you have to repay in 52 weeks and how much interest in total will you have to pay for the loan? [Note: Round the final answer to an…