On February 20th, a 5 month note for $4,020 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks. Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $4.154.40 Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $135.8 Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $4158.17 Required 4: If the note is sold on March 20th, the total amount of interest accrued by Lucky is: $25.62 € Required 5: If the note has biweekly compounded interest and it is sold on March 20th, the total amount of interest accrued by Lucky is: $25.67€
On February 20th, a 5 month note for $4,020 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks. Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $4.154.40 Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $135.8 Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $4158.17 Required 4: If the note is sold on March 20th, the total amount of interest accrued by Lucky is: $25.62 € Required 5: If the note has biweekly compounded interest and it is sold on March 20th, the total amount of interest accrued by Lucky is: $25.67€
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Ef 426.
Transcribed Image Text:On February 20th, a 5 month note for $4,020 was received by Lucky Company to settle an amount owing from a customer. It bears
interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364
days or 52 weeks.
Required 1: The amount (simple interest plus principal) received by Lucky at maturity is: $4,154.40
Required 2: If the note has monthly compounded interest, the total amount of interest received by Lucky at maturity is: $135.8
Required 3: If the note has biweekly compounded interest, the total amount of principal received by Lucky at maturity is: $4158.17
Ⓡ
Required 4: If the note is sold on March 20th, the total amount of interest accrued by Lucky is: $ 25.62 €
Required 5: If the note has biweekly compounded interest and it is sold on March 20th, the total amount of interest accrued by Lucky
is: $25.67€
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