Q1. On March 24, 2014, Brendan and Madison borrow $18,000 each at a simple interest rate r = Brendan's bank calculates interest using exact interest, while Madison's bank uses the Banker's Rule (ordinary interest). Let X= amount Brendan pays back on September 24, 2014, and Y= amount Madison pays back on September 24, 2014. What is the value of X- Y? 12%.

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
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Q1. On March 24, 2014, Brendan and Madison borrow $18,000 each at a simple interest rate r =
Brendan's bank calculates interest using exact interest, while Madison's bank uses the
Banker's Rule (ordinary interest). Let X= amount Brendan pays back on September 24, 2014,
and Y= amount Madison pays back on September 24, 2014. What is the value of X- Y?
12%.
CO1000
Transcribed Image Text:Q1. On March 24, 2014, Brendan and Madison borrow $18,000 each at a simple interest rate r = Brendan's bank calculates interest using exact interest, while Madison's bank uses the Banker's Rule (ordinary interest). Let X= amount Brendan pays back on September 24, 2014, and Y= amount Madison pays back on September 24, 2014. What is the value of X- Y? 12%. CO1000
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