SOLUTION: can someone please, please, please help me with this problem:
Find the proceeds. Assume 365 days in a year. Round to the nearest cent.
$20,000; discount rate 7%; length of lo
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Find the proceeds. Assume 365 days in a year. Round to the nearest cent.
$20,000; discount rate 7%; length of lo
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Question 168936This question is from textbook
: can someone please, please, please help me with this problem:
Find the proceeds. Assume 365 days in a year. Round to the nearest cent.
$20,000; discount rate 7%; length of loan 4 months
$466.67
$18,600.00
$19,533.33
$19,650.00 This question is from textbook
You can put this solution on YOUR website! That rate is given as 7% per year. You are only taking out the loan for 4 months. 4 months is 4/12 = 1/3 year. So you will only be paying 1/3 of the yearly interest
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So your proceeds in the event you are to repay 20000 in 4 months will be 20000-466.67 = 19533.33
So, the bank will give you 19533.33 today and expect you to replay 20000 in 4 months.
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