Rafael Sandino borrowed $23,000 on a 180-day, 11% note. After 80 days, Rafael paid $2,600 on the note. On day 120, Rafael paid an additional $4,600. Assume no further payments were made. Use ordinary interest. a.Determine the total interest paid during the life of the loan; use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.) b.Determine the ending balance due (the payoff amount); use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.)
Rafael Sandino borrowed $23,000 on a 180-day, 11% note. After 80 days, Rafael paid $2,600 on the note. On day 120, Rafael paid an additional $4,600. Assume no further payments were made. Use ordinary interest. a.Determine the total interest paid during the life of the loan; use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.) b.Determine the ending balance due (the payoff amount); use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.)
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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Rafael Sandino borrowed $23,000 on a 180-day, 11% note. After 80 days, Rafael paid $2,600 on the note. On day 120, Rafael paid an additional $4,600. Assume no further payments were made. Use ordinary interest.
a.Determine the total interest paid during the life of the loan; use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.)
b.Determine the ending balance due (the payoff amount); use the U.S. Rule. (Do not round intermediate calculations. Roundyour answer to the nearest cent.)
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