$10,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact method and by the ordinary method. (Round your answers to two decimal places.) exact method $ __________________ ordinary method $ ___________________ Which method yields the greater maturity value? exact method or ordinary method? Who benefits from using the ordinary method rather than the exact method, the borrower or the lender? the borrower or the lender?
$10,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact method and by the ordinary method. (Round your answers to two decimal places.) exact method $ __________________ ordinary method $ ___________________ Which method yields the greater maturity value? exact method or ordinary method? Who benefits from using the ordinary method rather than the exact method, the borrower or the lender? the borrower or the lender?
Chapter11: Capital Budgeting Decisions
Section: Chapter Questions
Problem 8EB: You put $600 in the bank for 3 years at 15%. A. If Interest Is added at the end of the year, how...
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$10,000 is borrowed for 150 days at an 8% interest rate. Calculate the maturity value by the exact method and by the ordinary method. (Round your answers to two decimal places.)
exact method $ __________________
ordinary method $ ___________________
Which method yields the greater maturity value?
exact method or ordinary method?
Who benefits from using the ordinary method rather than the exact method, the borrower or the lender?
the borrower or the lender?
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