Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%. How much was the interest? $Correct State your result to the nearest penny. How much did Ken receive from the bank? $Correct State your result to the nearest penny. What was the actual rate of interest?

Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%. How much was the interest? $Correct State your result to the nearest penny. How much did Ken receive from the bank? $Correct State your result to the nearest penny. What was the actual rate of interest?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 1CE

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Question

Ken borrowed $3400 from the bank for 20 months. The bank discounted the loan at 7.4%.

How much was the interest?
$Correct State your result to the nearest penny.

How much did Ken receive from the bank?
$Correct State your result to the nearest penny.

What was the actual rate of interest?

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