Question

Linda David agreed to lend money to Alex at a special interest rate of 9%per year....

Linda David agreed to lend money to Alex at a special interest rate of 9%per year. On the condition that he borrow enough that he would pay her $400 in interest over a 3 year period. What was the minimum amount Alex could borrow?
Math   Advanced-Math   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
David decided to invest an amount of money in a bank that pays 20.00% nominal interest,...
David decided to invest an amount of money in a bank that pays 20.00% nominal interest, compounded monthly, to provide him with an annuity of $10,800 (per year) for 6 years, starting 12 years from now. If the interest rate remains constant over this entire period. What amount should he invest?
Assume that a bank can borrow or lend money at the same interest rate in the...
Assume that a bank can borrow or lend money at the same interest rate in the LIBOR market. The 91-day rate is 5% per year, and the 182-day rate is 5.2%. Assume the LIBOR rates are continuously compounded. The Eurodollar futures price for a contract maturing in 91 days is quoted as 96. Could you find any arbitrage opportunities?                          How would you conduct the arbitrage? What should be the arbitrage profit?
Your mom will lend you money so long as you agree to pay her back within...
Your mom will lend you money so long as you agree to pay her back within five years and you offer to pay her the rate of interest that she would otherwise get by putting his money in a saving account. Based on your earnings and living expenses, you think you will be able to pay him 8000$ in one year and then 10000$ each year for the following next four years. If your mom would otherwise earn 5% per...
QUESTION 1: Alex and Carmila agreed to buy the fixed assets and goodwill of a business...
QUESTION 1: Alex and Carmila agreed to buy the fixed assets and goodwill of a business for a lump sum consideration of RM400,000 payable in full on the transfer of the business in 2018. Not having enough money, they borrowed RM200,000 from Taram Ltd, located in Indonesia, which is repayable in full after two years. In the meantime, Alex and Carmila are to pay interest every three months starting from 1 March 2019 at the rate of 10% per annum...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over a 10-year period. He plans to pay off the loan in 10 yearly payments of $16,000 each, and with the money that he is going to inherit from his grand parents. How much should he inherit to pay off the entire loan if the grand parents give him the money at the end of the 4th year and he hands over the entire amount...
Paul takes a loan of $150,000 from the bank at 4% interest rate per year over...
Paul takes a loan of $150,000 from the bank at 4% interest rate per year over a 10-year period. He plans to pay off the loan in 10 yearly payments of $10,000 each, and with the money that he is going to inherit from his grand parents. How much should he inherit to pay off the entire loan if the grand parents give him the money at the end of the 5th year and he hands over the entire amount...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over...
Paul takes a loan of $225,000 from the bank at 7% interest rate per year over a 10-year period. He plans to pay off the loan in 10 yearly payments of $16,000 each, and with the money that he is going to inherit from his grand parents. How much should he inherit to pay off the entire loan if the grand parents give him the money at the end of the 4th year and he hands over the entire amount...
Last year, you borrowed money from Cousin Vinnie and he agreed to a 25 percent interest...
Last year, you borrowed money from Cousin Vinnie and he agreed to a 25 percent interest rate per year. If you borrowed $250, and know you have to pay him in full exactly $488.28 (and make no other payments to him), what will be the total length of the loan?
I can borrow money at a rate of 8% per year, but that I only earn...
I can borrow money at a rate of 8% per year, but that I only earn 2% per year on money I loan. A friend has recently offered me an investment opportunity; if I make a $10,000 investment today, then I will receive a guaranteed $10,500 in one year. I currently have $10,000 in the bank, but I plan on consuming $8,000 – meaning that I only have $2,000 that I could invest. Can/should make the investment? What is the...
I can borrow money at a rate of 8% per year, but that I only earn...
I can borrow money at a rate of 8% per year, but that I only earn 2% per year on money I loan. A friend has recently offered me an investment opportunity; if I make a $10,000 investment today, then I will receive a guaranteed $10,500 in one year. I currently have $10,000 in the bank, but I plan on consuming $8,000 – meaning that I only have $2,000 that I could invest. Can/should make the investment? What is the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT