Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent. Principal $ 590 Interest rate Date borrowed June 10 5% Date repaid December 12 Exact time Interest Maturity value

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Complete the following, using exact interest. (Use Days in a year table.)
Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent.
Principal Interest rate
5%
590
Date borrowed Date repaid Exact time
June 10 December 12
Interest
Maturity value
Transcribed Image Text:Complete the following, using exact interest. (Use Days in a year table.) Note: Do not round intermediate calculations. Round the "Interest" and "Maturity value" to the nearest cent. Principal Interest rate 5% 590 Date borrowed Date repaid Exact time June 10 December 12 Interest Maturity value
Expert Solution
Step 1

Simple Interest can be calculated as = Principle x Rate of Interest x Time Period

Here it is important to understand that date of borrowing is including in time period for interest calculation but date of repayment is not included.

 

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