The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume there are 360 days in a year and round answers to the nearest cent. P-59000, r = 6.5%, t = 18 months (Round to the nearest cent.)

The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple interest owed for the use of the money. Assume there are 360 days in a year and round answers to the nearest cent. P-59000, r = 6.5%, t = 18 months (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

See similar textbooks

Related questions

Q: Complete the table below giving the principal P that must be invested at interest rate 10.5 %…

A: The Principal value is given as: P = A / (1+r/n)nt where, A = amount after t years r = compounding…

Q: Find the accumulated amount A if the principal P is invested at the interest rate of r/year for t…

A: Future value = Present value ( 1 + Rate of interest )Number of period

Q: The principal P is borrowed at a simple interest rate R for a period of time T. Find the loans…

A: Calculation of Future Value and Total Amount Due:The future value is 7,605 and total amount due is…

Q: Show that the total interest paid on the amortization of a loan with leveled monthly payments K for…

A: The loan amount denotes by P, Monthly payment by k, number of years by n years, and rate of interest…

Q: What is the quarterly payment on a loan of $22,000 for 5 years at i= 8% per year, compounded…

A: Mortgage/ Borrowings: Borrowings are the loan which is taken by the individual to meet its…

Q: A loan of $7000 is to be repaid by three equal payments one and a half year from now, three years…

A: Computation of Effective interest rate: EAR=1+15%44-1=1+0.03754-1=1.15865-1=15.865%

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: Simple interest is defined as an easy as well as quick method for the calculation of an interest on…

Q: Compute the rate (in%) for the loan. Round answers to the nearest tenth of a percent; use ordinary…

A: Interest = Principle * Interest Rate * time

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Give rate is 7.15% compounded semiannually no. of years 20

Q: P500,000 was deposited for a period of 5 yrs. And 6 months and bears on interest of P85,659.25.…

A: The rate of interest is the percentage that is charged on the loan of amount.

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: Both future value of annuity and present value of annuity considers compounding in its calculation.…

Q: If $14,000 is borrowed for 2 months and $82 is paid, then the annual simple interest rate is ____

A: Interest = p * r * t Interest = $82 principal = $14,000 r = rate of interest t = time in years = 2…

Q: How much interest will be charged on P7,300 borrowed for three (3) years at a simple interest rate…

A: The simple interest method is a method where interest is calculated only on the principal amount…

Q: An amount of P dollars is borrowed for the given length of time with the amount F due at the end of…

A: given data borrowed amount (p)= 2400 due amount (f) = 3744 time period t = 7 years interest rate =…

Q: What is the simple interest on ₱ 30,000 for six months at a simple interest rate of 12% (b) What is…

A: Investing is a critical component of wealth growth. It enables the investor to fight inflation,…

Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…

A: Excel Spreadsheet:

Q: Assume that 1500 Php is deposited in an account in which interest is compounded annually at a rate…

A: Deposit amount = 1500 Php Interest rate = 6% Period = 5 Years Compounding = Annually

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's…

A: Formula: Future value=P×1+rt

Q: An amount of P dollars is borrowed for the given length of time at an annual simple interest rate of…

A: Amount due at the end of period can be calculated as sum of borrowing and simple interest

Q: How much interest will be charged on ₱7,300 borrowed for three (3) years at a simple interest rate…

A: SIMPLE INTEREST FORMULA: simple interest =P×R×T100 P=Principal r=rate t=time in years

Q: If $27895 is borrowed for 5 months and P688 is paid, then the annual simple interest rate is…

A: Simple interest is one of the form of interest in which interest is charged on original investment…

Q: f the nominal rate is 11.5% per year compounded continuously, what is the equivalent effective rate…

A: Nominal rate = 11.5% compounded continuously We need to find bi-monthly rate, where there are 24…

Q: Find i (the rate per period) andn (the number of periods) for the following loan at the given annual…

A: Given information: Quarterly payment $1,125 Number of years is 9 Annual interest rate is 7.4%

Q: Compare the stated annual rate (r) to the effective annual rate (EAR). What relationship exists…

A: The effective annual rate of interest is the real return on the savings account when the effects of…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: The simple interest is computed on the loan amount for the time period the loan was due. It does not…

Q: In a discount interest loan, you pay the interest payment up front. For example, if a 1-year loan is…

A: Given: Interest rate = 8.50% Amount borrowed = $42,000 Interest amount = $3,570 Net loan = $38,430

Q: Assume a firm makes a $2,500 deposir into its money market account. If this account is currently…

A: Future value Function in excel

Q: Find the annual simple interest rate of a loan, where $800 is borrowed and where $904 is repaid at…

A: Interest charged on the principal amount at a fixed rate for a fixed period of time is known as…

Q: You borrowed $700 at 5% compounded quarterly. Yourpayments are $150 at the end of each year. How…

A: We will adopt the following approach:It's a typical time value of money case, where we have to find…

Q: (a) If $1100 is borrowed at 9% interest, find the amounts due at the end of 3 years if the interest…

A: An interest rate method in which current interest is computed by multiplying the interest rate by…

Q: Mr. Hyson borrowed $15,550 from the bank for 3 yrs. If the quoted rate (APR) is 6.55% and the…

A: The Effective Annual Rate (EAR) for daily is calculated by compounding daily rate wit the number of…

Q: Find the simple interest. Assume the rate is an annual rate. Assume 360 days in a year. Principal…

A: Solution:- Interest means the earnings made by depositing an amount somewhere for a period of time.…

Q: A bank offers a lending rate of 10% p.a. compounded quarterly. What figure would they quote if they…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: The principal P is borrowed and the loan's future value A at time t is given. Determine the loan's…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: The annual interest rate that is charged by the lenders or at which the investors earn additional…

Q: Which one of the following represents the highest effective interest rate per year? Select one:…

A: Daily compounded interest means that interest is accumulated on a daily basis and is calculated by…

Q: The principal P is borrowed at simple interest rate r for a period of time t. Find the loan's…

A: the loan's future value can be calculated using following formula = final amount =…

Q: What amount will be accumulated by Php 1,520 in 10 semi annuals at 6% compounded bi-monthly? What…

A: Since you have asked multiple questions, we will solve the first question for you as per policy.…

Q: For each of the following cases, indicate (a) to what rate columns, and (b) to what number of…

A: Time value of money: The value of money changes over a period time. The value of money depends on…

Q: The principal P=$6600 is borrowed at simple interest rate r=5.5% for a period of time t=15…

A: Given: P = $6,600 r = 5.5% t = 15 months Formula: Simple Interest = Prt

Q: Assume that at time 0 a sum L is lent for a series of n yearly payments. The rth payment, of amount…

A: Amount lended or Present value is Leffective annual interest rate is irNumber of payment is r To…

Q: The principal P is borrowed at a simple interest rate r for a period of time t. Find the loan's…

A: When interest is calculated only on principal over period without considering compounding factor of…

Q: Find i (the rate per period) and n (the number of periods) for the following loan at the given…

A: Solution:- Rate per period ie, “i” refers to the annual rate divided by the number of compounding in…

Q: what amount of interest will be charged if 7000 is borrowed for 9 months at a simple rate of…

A: Borrowed amount= 7000 Time period= 9 months = 9/12= 0.75 Simple interest rate= 9.5% per annum= 0.095

Q: Determine the simple interest. The rate is an annual rate. Assume 360 days in a year. p = $340, r =…

A: Simple interest = Principal * Interest rate * Time period

Q: What value of r will make the future value of the account P5, 200 in six months?

A: Future Value: It is the future worth of the present cashflows or the present sum of money. Future…

Q: .h Find the principal, if the principal plus the interest at the end of one and one-half years is…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: If the sum of P12,000.00 is deposited in an account earning interest rate of 9% compounded…

A: Future Value: The future value is the amount that will be received at the end of a certain period.…

Q: If compounding is quarterly, what effective annual interest rate will make the following values of P…

A: Future value of a present value is the value of that amount after taking into account the time value…

Concept explainers

Mortgages

A mortgage is a formal agreement in which a bank or other financial institution lends cash at interest in return for assuming the title to the debtor's property, on the condition that the obligation is paid in full.

Mortgage

The term "mortgage" is a type of loan that a borrower takes to maintain his house or any form of assets and he agrees to return the amount in a particular period of time to the lender usually in a series of regular equally monthly, quarterly, or half-yearly payments.

Question

The principal P is borrowed at a simple interest rate r for a period of time t. Find the simple
interest owed for the use of the money. Assume there are 360 days in a year and round answers
to the nearest cent.
P= $9000, r = 6.5%, t = 18 months
(Round to the nearest cent.)

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Effective Cost of Short-Term Credit Yonge Corporation must arrange financing for its working capital requirements for the coming year. Yonge can: (a) borrow from its bank on a simple interest basis (interest payable at the end of the loan) for 1 year at a 12% nominal rate; (b) borrow on a 3-month, but renewable on rate with 12 end-of-month payments; or (d) obtain the needed funds by no longer taking discounts and thus increasing its accounts payable. Yonge buys on terms of 1/15, net 60. What is the effective annual cost (not the nominal cost) of the least expensive type of credit, assuming 360 days per year?
Define the stated (quoted) or nominal rate INOM as well as the periodic rate IPER. Will the future value be larger or smaller if we compound an initial amount more often than annually—for example, every 6 months, or semiannually—holding the stated interest rate constant? Why? What is the future value of $100 after 5 years under 12% annual compounding? Semiannual compounding? Quarterly compounding? Monthly compounding? Daily compounding? What is the effective annual rate (EAR or EFF%)? What is the EFF% for a nominal rate of 12%, compounded semiannually? Compounded quarterly? Compounded monthly? Compounded daily?
(1) What is the value at the end of Year 3 of the following cash flow stream if the quoted interest rate is 10%, compounded semiannually? (2) What is the PV of the same stream? (3) Is the stream an annuity? (4) An important rule is that you should never show a nominal rate on a time line or use it in calculations unless what condition holds? (Hint: Think of annual compounding, when INOM = EFF% = IPER.) What would be wrong with your answers to parts (1) and (2) if you used the nominal rate of 10% rather than the periodic rate, INOM/2 = 10%/2 = 5%?
If Bergen Air Systems takes out a $100,000 loan, with eight equal principal payments due over the next eight years, how much will be accounted for as a current portion of a noncurrent note payable each year?