nterest rate charged on the loan was 3.5% co
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Bb.43.
Transcribed Image Text:A company currently owes $15,000 to a bank for a loan it took 6 years and 6 months
ago. The interest rate charged on the loan was 3.5% compounded monthly.
a. What was the original principal of the loan?
Round to the nearest cent
b. What was the amount of interest charged on the loan?
Round to the nearest cent
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