Answered: Irmgard borrowed ¢7 million from her…

Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no interest has been paid, how much will be needed to pay off the loan in three years’ time?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

7) Irmgard borrowed ¢7 million from her friend at a rate of 21% converted monthly 2 years ago. If no interest has been paid, how much will be needed to pay off the loan in three years’ time?

8) The nominal interest rates for Zenith and HFC banks are quoted as follows: - Zenith bank pays interest rate at a savings account of 11.72% compounded semi-annually. - HFC bank pays 11.50% on a savings account compounded monthly. Which bank pays its sellers the most interest rate?

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