Daryl borrowed $5,440 for 4 years. If the loan's annual simple discount rate was 4.1%, how much did he have to return

EBK CFIN
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ISBN:9781337671743
Author:BESLEY
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Chapter4: Time Value Of Money
Section: Chapter Questions
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Daryl borrowed $5,440 for 4 years. If the loan's annual simple discount rate was 4.1%, how much did he have to return?

Expert Solution
Step 1

Amount borrowed (P) = $5,440

Time (T) = 4 years

Rate (R) = 4.1%

Total amount to be returned = Principal + Interest

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