PFIN 7:STUDENT EDITION-TEXT
7th Edition
ISBN: 9780357033616
Author: Billingsley
Publisher: CENGAGE L
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Chapter 6, Problem 6FPE
Using overdraft protection line. Grace Wang has an overdraft protection line. Assume that her October 2020 statement showed a latest (new) balance of $862. If the line had a minimum monthly payment requirement of 5 percent of the latest balance (rounded to the nearest $5 figure), what would be the minimum amount that she’d have to pay on her overdraft protection line?
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Problem:
Answer the following questions completely. Show all computations. Round off only the final answers to two decimal places.
On June 26, 2019, Sarah obtained a loan of P150,000 from a local businessman. The interest rate on the loan was 7.75% and it is to be paid on November 15, 2020.
What is the exact time from June 26, 2019, to November 15, 2020?
What is the approximate time from June 26, 2019, to November 15, 2020?
What is the Ordinary simple interest using exact time?
What is the Ordinary simple interest using approximate time?
What is the Exact simple interest using exact time?
What is the Exact simple interest using approximate time?
If Sarah was given the option to choose the type of interest to use, which should she had chosen? Explain why in one sentence.
Chapter 6 Solutions
PFIN 7:STUDENT EDITION-TEXT
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- please help with attachedarrow_forwardLiza needs P 67,500 on June 14, 2019. She plans to repay the loan on September 12, 2019. How much should she request from a lender whose discount rate is 9%.arrow_forwardHow much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12% payable annually starting December 31, 2022. The loan matures in three years on December 31, 2024. Pertinent information on the loan is provided below: Principal amount Origination fee received from the borrower Direct origination cost Indirect origination cost incurred After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 9%. 1,000,000 44,900 120,856 12,000arrow_forward
- How much shall be reported as interest income for 2022? ALVR Digital Bank granted a loan to a client on January 1, 2022. The interest on the loan is 12% payable annually starting December 31, 2022. The loan matures in three years on December 31, 2024. Pertinent information on the loan is provided below: Principal amount Origination fee received from the borrower Direct origination cost Indirect origination cost incurred After considering the origination fee received from the borrower and the direct origination cost incurred, the effective rate on the loan is 9%. 1,000,000 44,900 120,856 12,000 O 90,000 O 96,836 O 120,000 O 129,115 O Answer not givenarrow_forwardPLEASE ANSWER WITHIN 30 MINUTES.arrow_forwardJane took out a loan from the bank today for X. She plans to repay this loan by making payments of $520.00 per month for a certain amount of time. If the interest rate on the loan is 1.12 percent per month, she makes her first $520.00 payment later today, and she makes her final monthly payment of $520.00 in 7 months, then what is X, the amount of the loan? O An amount less than $3,501.00 or an anmount greater than $4,238.00 O An amount equal to or greater than $3,501.00 but less than $3,739.00 O An amount equal to or greater than $3,739.00 but less than $3,980.00 O An amount equal to or greater than $3,980.00 but less than $4,081.00 O An amount equal to or greater than $4,081.00 but less than $4,238.00arrow_forward
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