2. Aiman borrows RM750 for 5 months from Bank ABC who charges a 9% simple discount rate. (a) How much money does Aiman receive? (b) What size of loan should Aiman ask for in order to receive RM1,200 cash? (c) What is the equivalent simple interest rate he pays on the loan?

2. Aiman borrows RM750 for 5 months from Bank ABC who charges a 9% simple discount rate. (a) How much money does Aiman receive? (b) What size of loan should Aiman ask for in order to receive RM1,200 cash? (c) What is the equivalent simple interest rate he pays on the loan?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 15P

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2.
Aiman borrows RM750 for 5 months from Bank ABC who charges a 9% simple
discount rate.
(a)
(b) What size of loan should Aiman ask for in order to receive RM1,200 cash?
(c) What is the equivalent simple interest rate he pays on the loan?
How much money does Aiman receive?

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