Jacques has just been notified that the combined principal and interest on an amount he borrowed 19 months ago at 8.4% interest compounded monthly is now $2297.78 and must be repaid now that the loan contract is complete. a. What was the amount of the original loan? b. If someone purchased the loan contract after 8 months to yield interest at 7.9% compounded quarterly, what was the purchase price of the loan contract
Jacques has just been notified that the combined principal and interest on an amount he borrowed 19 months ago at 8.4% interest compounded monthly is now $2297.78 and must be repaid now that the loan contract is complete. a. What was the amount of the original loan? b. If someone purchased the loan contract after 8 months to yield interest at 7.9% compounded quarterly, what was the purchase price of the loan contract
Pfin (with Mindtap, 1 Term Printed Access Card) (mindtap Course List)
7th Edition
ISBN:9780357033609
Author:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Chapter7: Using Consumer Loans
Section: Chapter Questions
Problem 6FPE
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Jacques has just been notified that the combined principal and interest on an amount he borrowed 19 months ago at 8.4% interest compounded monthly is now $2297.78 and must be repaid now that the loan contract is complete.
a. What was the amount of the original loan?
b. If someone purchased the loan contract after 8 months to yield interest at 7.9% compounded quarterly, what was the purchase price of the loan contract?
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