After you purchase the house, you decide to do some remodeling in the kitchen. You ask your parents if they would lend you money, but you insist on paying them interest. The agreement is that they will lend you $6000.00 at a simple interest rate of 3% per year. Once the interest amounts to $300, you agree to pay them back the $6000 plus the $300 interest. After how many months will you have to pay them back? Be sure to show all of your work.
After you purchase the house, you decide to do some remodeling in the kitchen. You ask your parents if they would lend you money, but you insist on paying them interest. The agreement is that they will lend you $6000.00 at a simple interest rate of 3% per year. Once the interest amounts to $300, you agree to pay them back the $6000 plus the $300 interest. After how many months will you have to pay them back? Be sure to show all of your work.
Excel Applications for Accounting Principles
4th Edition
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Gaylord N. Smith
Chapter27: Time Value Of Money (compound)
Section: Chapter Questions
Problem 6E
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- After you purchase the house, you decide to do some remodeling in the kitchen. You ask your parents if they would lend you money, but you insist on paying them interest. The agreement is that they will lend you $6000.00 at a simple interest rate of 3% per year. Once the interest amounts to $300, you agree to pay them back the $6000 plus the $300 interest.
After how many months will you have to pay them back? Be sure to show all of your work.
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