Question
Eileen R Edwards wanted to borrow $27,258 from the bank. The bank responded by saying that she could borrow the money if she repaid $28,258
Eileen R Edwards wanted to borrow $27,258 from the bank. The bank responded by saying that she could borrow the money if she repaid $28,258 14 months later. a. What rate would the bank be charging expressed on a per year basis compounded quarterly basis? [4] b. Eileen would like to repay the loan in two instalments. Her first payment would be $20,000 paid after 11 months after borrowing the money, and the second payment would be $8,358. If the bank were to charge her the same interest rate as in the original offer, when would her second repayment have to occur? [6] c. Who is/was Eileen R Edwards?
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