Question 92 ptsAn investor borrowed $10,000 to buy shares of stock of a chain of retail gift stores. The loan was for 120 daysat 9% ordinary simple interest. Compute the interest that the investor will pay on the due date. (Use a 360-dayyear.)$3,633.33$450$300$330

Simple Interest = Principal * Rate * Time where, Principal = $10,000Rate = 9%Time = 120/360So simple…

Answered: Question 9 2 pts An investor borrowed…

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

Section: Chapter Questions

Problem 1PS

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Testbank Multiple Choice Question 93 Vaughn Manufacturing borrowed $413000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31? $33040. $37170. O $0. $49560.
Question 6 Your Company borrowed $5,000 using a 6-year installment note. The interest rate is 4.5% and the annual payment of $969, due each December 31, includes both interest and principal. How much of the second payment would reduce principal? $968 O $744 $748 $225 O $778
25 A company purchases a piece of machinery by issuing a $300,000 five-year note payable. The stated and effective annual interest rates are both 6%, and monthly installment payments are $5,800. What is the balance in the Notes Payable account after two payments have been made? $288,400 O $291,379 $295,700 $300,000 NEXT > BOOKMARK
QUESTION 5 Hansco borrowed $5635 paying interest at 4.05% compounded annually. If the loan is repaid by payments of $279 made at the end of each year. Find the number of payments. Round your answer to 8 decimal places. Sample input 6.43215678
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Knowledge Check 01 Kylah Enterprises signs a 3-month, noninterest-bearing note with a stated rate of 13.5% and a maturity value of $215,000? What is the cash proceeds available to the borrower? (Round your answer to 2 decimal places.) Cash proceeds available to the borrower 7,256.25 %24
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Question 9 2 pts An investor borrowed $10,000 to buy shares of stock of a chain of retail gift stores. The loan was for 120 days at 9% ordinary simple interest. Compute the interest that the investor will pay on the due date. (Use a 360-day year.) $3,633.33 $450 $300 $330