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
Related questions
Question
Transcribed Image Text:Principal
Rate (%)
Time
Interest
$85,000
2; years
4
Expert Solution
Step 1
The amount of interest is the amount that the borrower needs to pay on the principle amount as per fixed interest rate over the period of time.
Step 2
Given Information:
Principal amount is $85,000
Interest rate is 4%
Time is 2.5 years
Step 3
Formula used:
Step by step
Solved in 5 steps with 2 images
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