Answered: A man needed money to buy lawn…

A man needed money to buy lawn equipment. He borrowed $700.00 for eight months and paid $53.98 in interest. What was the rate of interest? The rate of interest per year was%. cimal (R. ded)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

ChapterM: Time Value Of Money Module

Section: Chapter Questions

Problem 11RE: Samuel Ames owes 20,000 to a friend. He wants to know how much he would have to pay if he paid the...

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Concept explainers

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.

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A man needed money to buy lawn equipment. He borrowed $700.00 for eight months and paid $53.98 in interest. What
was the rate of interest?
The rate of interest per year was%.
(Round to one decimal place as needed.)

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