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What is the answer for these two questions? A retailer owes a wholesaler $900,000 due in 45 days. If the payment is 15 days late,
What is the answer for these two questions?
A retailer owes a wholesaler $900,000 due in 45 days. If the payment is 15 days late, there is a 1% penalty charge. The retailer can get a 45-day certificate of deposit (CD) earning 9% per year simple interest or a 60-day certificate earning 10% per year simple interest. Is it better to take the 45-day certificate and pay on time or to take the 60-day certificate and pay late with the penalty? O The 45-day certificate is better. The 60-day certificate is better. O They are equivalent. Need Help? Read It Watch It 3. [1/2 Points] DETAILS PREVIOUS ANSWERS HARMATHAP12 6.1.023. MY NOTES ASK YOUR TEACHER PRACTICE ANOTHER Bill Casler bought a $6000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest. Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured. (a) What is the value of the CD when it matures? $ 6360 (b) If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend? (Round your answer to the nearest cent.) $ 6355.23 Need Help? Read ItStep by Step Solution
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