Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 5 [5 points] Radu was scheduled to repay a loan 60 days from now with a payment of $3,800.00, but will get some extra

image text in transcribed
image text in transcribed
Question 5 [5 points] Radu was scheduled to repay a loan 60 days from now with a payment of $3,800.00, but will get some extra money and be able to pay it off 30 days from now with an equivalent payment of $3,774.41. Assuming that interest rates do not change during the period of the loan, what was the interest rate of the loan? Note: Please make sure your final answer(s) are in percentage form and are accurate to 2 decimal places. For example 34.56% Annual rate = 0.00 % Question 6 [5 points] Siran purchased a short-term $16,000, 180-day GIC which will earn 2.25% interest annually. When the GIC matures, the maturity value is rolled into another short-term 30-day GIC which will earn 2.50% interest annually. What is the maturity value of the second GIC? For full marks your answer(s) should be rounded to the nearest cent. Maturity value = $ 0.00

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Economics

Authors: Luke M. Froeb, Brian T. McCann, Michael R. Ward

5th Edition

1337106666, 978-1337106665

More Books

Students also viewed these Economics questions

Question

Relax your shoulders

Answered: 1 week ago