Question

a) You obtain a loan of $800 at 14.5% interest. On January 27th, you needed $831.90...

a) You obtain a loan of $800 at 14.5% interest. On January 27th, you needed $831.90 to settle the debt. When was the loan obtained? Use the bankers rule.

b) How much money would you have to pay now to settle debts of $1200 due in ten days and $3100 due in 3 weeks if the daily interest rate is 0.35%? Use today as the focal date. Draw an appropriate diagram.

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Answer #1

a) By Bankers rule Interest - PXRXT 360 831igor 800 = 31.go= 800x 0.145XT. . T= 31.90x360 = 99 8004 od 45. 1 . loan was for a1200 $3100 today day lo 3 weeks = day 21 money you would have to pay now = $1200 + 3100 (100035)10 (-0035) 2) $1158.7973 + $2

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