Note Principal Rate Term 1 $18,000 4% 6 years 2 $18,000 6% 4 years 3 $18,000 8% 3 years Note 1 Answer Note 2 Answer Note 3 Answer b. Compute the amount of interest due at the end of the term for each of the above notes assuming interest is compounded annually. Use Excel or a financial calculator for your computations. Round your answer to the nearest dollar. Note 1 Answer Note 2 Answer Note 3 Answer
Note Principal Rate Term 1 $18,000 4% 6 years 2 $18,000 6% 4 years 3 $18,000 8% 3 years Note 1 Answer Note 2 Answer Note 3 Answer b. Compute the amount of interest due at the end of the term for each of the above notes assuming interest is compounded annually. Use Excel or a financial calculator for your computations. Round your answer to the nearest dollar. Note 1 Answer Note 2 Answer Note 3 Answer
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter9: Current Liabilities, Contingencies, And The Time Value Of Money
Section: Chapter Questions
Problem 9.12E
Related questions
Question
Simple and Compound Interest
a. For each of the following notes, calculate the simple interest due at the end of the term.
Round to the nearest dollar.
Note | Principal | Rate | Term |
---|---|---|---|
1 | $18,000 | 4% | 6 years |
2 | $18,000 | 6% | 4 years |
3 | $18,000 | 8% | 3 years |
Note 1 | Answer
|
Note 2 | Answer
|
Note 3 | Answer
|
b. Compute the amount of interest due at the end of the term for each of the above notes assuming interest is compounded annually.
Use Excel or a financial calculator for your computations. Round your answer to the nearest dollar.
Note 1 | Answer
|
Note 2 | Answer
|
Note 3 | Answer
|
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