Melinda Little obtained a single-payment loan of $325 to pay a repair bill. Sheagreed to repay the loan in 30 days at an interest rate of 15.75% exact interest.What is the interest owed?O $329.21O $4.21O $4.27O $329.27

To calculate the interest owed on a single-payment loan, we use the formula for exact…

Answered: Melinda Little obtained a…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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Similar questions

Investors sometimes fear that a high-risk investment is especially likely to have low returns. Is this fear true? Does a high risk mean the return must be low?
What are some ways that someone looking for a loan might reassure a bank that is faced with imperfect information about whether the borrower will repay the loan?
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If you receive 500 in simple interest on a loan that you made for 10,000 for five years, what was the interest rate you charged?
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Calculate the equity each of these people has in his or her home: Fred just bought a house for 200,000 by putting 10 as a down payment and borrowing the rest from the bank. Freda bought a house for 150,000 in cash, but if she were to sell it now, it would sell for 250,000. Frank bought a house for 100,000. He put 20 down and borrowed the rest from the bank. However, the value of the house has now increased to 160,000 and he has paid off 20,000 of the bank loan.
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Melinda Little obtained a single-payment loan of $325 to pay a repair bill. She agreed to repay the loan in 30 days at an interest rate of 15.75% exact interest. What is the interest owed? O $329.21 O $4.21 O $4.27 O $329.27