Question
Suppose Fred borrowed $5,683 for 11 months and Joanna borrowed $4,899. Fred's loan used the simple discount model with an annual rate of 9.7% while
Suppose Fred borrowed $5,683 for 11 months and Joanna borrowed $4,899.
Fred's loan used the simple discount model with an annual rate of 9.7% while Joanne's loan used the simple interest model with an annual rate of 2.9%.
If their maturity values were the same, how many months was Joanna's loan for?
Round your answer to the nearest month.
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Contemporary Financial Management
Authors: R. Charles Moyer, James R. Mcguigan, William J. Kretlow
9th Edition
032416470X, 9780324164701
