In June, Ginnie received a bill for $4500 from a store that provides her company's office supplies. She plans to pay the bill with her secured line of credit, at 1.5 percentage points above the Bank of Canada rate, compounded monthly. Ginnie can afford payments of $600 each month. The Bank of Canada rate is now at 0.6%. How much interest will she pay? A. $24.05 B. $4533.75 C. $33.75 D. $21.00
In June, Ginnie received a bill for $4500 from a store that provides her company's office supplies. She plans to pay the bill with her secured line of credit, at 1.5 percentage points above the Bank of Canada rate, compounded monthly. Ginnie can afford payments of $600 each month. The Bank of Canada rate is now at 0.6%. How much interest will she pay? A. $24.05 B. $4533.75 C. $33.75 D. $21.00
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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- In June, Ginnie received a bill for $4500 from a store that provides her
company's office supplies. She plans to pay the bill with her secured line of credit, at 1.5 percentage points above the Bank of Canada rate, compounded monthly. Ginnie can afford payments of $600 each month. The Bank of Canada rate is now at 0.6%. How much interest will she pay? A. $24.05 B. $4533.75 C. $33.75 D. $21.00
NUMERICAL RESPONSE
- A guitar manufacturer is making 50 guitars, at $350 each, for a music store.
To pay the bill, the music store is taking out a bank loan at 6.4% interest, compounded monthly, with a 12-month term. The bank is offering a choice between two repayment schedules:
- Pay it off in one payment at the end of the term.
- Pay it off in monthly payments. a) If the loan is repaid in one payment, then the total payment will be
$18 620, of which is interest.
- b) If the loan is repaid in monthly payments, then each payment will be and in interest will be charged.
I need help for both questions. The spaces in between some words are for ANSWERS. Thank you.
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