Che Nolan Walker decided to buy a used snowmobile since his credit union was offering such...

Che Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates. He borrowed $2.700 at 3.5% on December 26, 2019, and paid it off February 21, 2021. How much did he pay in interest? (Assume ordinary interest and no leap year.) (Use Days in a year table.) (Do not round intermediate calculations, Round your answer to the nearest cent.)

TABLE 7.1 Exact days n-a-year calendar (excluding leap year 28 Day of month SS33 38 23 8998893 - 50 GBS -- 345 97 EE 196 25 2

Solutions

Expert Solution

Days between 26/12/2019 till 21-02-2021 = 422 days

dont count the day on which amount is borrowed that is 26/12/2019. Also we exclude 29/02/2020 since leap year is to be excluded

so interest paid is

2700*3.5%*422/365 = 109

ekkarill92 answered 2 years ago

Next > < Previous

Related Solutions

Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates

Nolan Walker decided to buy a used snowmobile since his credit union was offering such low interest rates. He borrowed $3,400 at 4.25% on December 26, 2019, and paid it off February 21, 2021. How much did he pay in interest? (Assume ordinary interest and no leap year.) (Use Days in a year table.) (Do not round intermediate calculations. Round your answer to the nearest cent.)

Premier Federal Credit Union is offering a 2-year certificate ofdeposit with a stated rate of...

Premier Federal Credit Union is offering a 2-year certificate of deposit with a stated rate of 6.50% and quarterly compounding, The effective rate for the certificate is: A. 6.6879%. B. 6.6602%. C. 6.6056%.

You have decided to buy a car that costs $23,000. Since you do not have a...

You have decided to buy a car that costs $23,000. Since you do not have a big down payment, the lender offers you a loan with an APR of 5.87 percent compounded monthly for 5 years with the first monthly payment due today. What is the amount of your loan payment?

You have decided to buy a car that costs 27400. Since you do not have a...

You have decided to buy a car that costs 27400. Since you do not have a big down payment, the lender offers you a loan with an APR of 6.09 percent compounded monthly for 7 years with the first monthly payment due today. What is the amount of your loan payment

You have decided to buy a car that costs $24,600. Since you do not have a...

You have decided to buy a car that costs $24,600. Since you do not have a big down payment, the lender offers you a loan with an APR of 5.95 percent compounded monthly for 6 years with the first monthly payment due today. What is the amount of your loan payment?

Umberto and Tiara, who are married, borrow $110,000 from Sterling Credit Union to buy a home....

Umberto and Tiara, who are married, borrow $110,000 from Sterling Credit Union to buy a home. The loan is a fixed-rate mortgage at 5.25 percent with a thirty-year term, subject to an acceleration clause, and secured by the home, which is their principal residence. When Umberto and Tiara have paid off $10,000 of the mortgage—still owing $100,000—they lose their jobs and stop making payments. Sterling Credit makes numerous attempts to contact the couple, but they do not respond. Meanwhile, the...

Donny was offered by his friend to buy powerbanks at a discounted price. He decided to...

Donny was offered by his friend to buy powerbanks at a discounted price. He decided to accept the offer and bought 500 units of powerbank. He used all of his savings and also took a personal loan from a local bank to finance the transaction. Within four months, he managed to sell all of the powerbanks by advertising it through social media and gained substantial profit from the sales. He has never engaged in any similar transactions before and he...

Jason Taylor decided to use his NFL earnings to buy an island in the Caribbean. He...

Jason Taylor decided to use his NFL earnings to buy an island in the Caribbean. He paid a deposit when he signed the contract. The remaining money was due at the time of closing, on the condition that the seller provided him clear title to the property. At the time of closing, the seller could not provide a clear title and Jason Taylor did not pay the balance of the sales price. What is the consideration for this contract? Is...

You recently got promoted at your job. You have since decided to buy your dream car...

You recently got promoted at your job. You have since decided to buy your dream car and expect that it will cost you $93,000 seven years from today. After budgeting your expenses, you decide that you can save $9,000 per year at the end of each year. Given a market interest rate of 13%, will you be able to purchase your car at the end of year 7? Would you be able to afford it one year later? with financial...

John, a man who takes pride in his yard, decided to buy a brand new lawnmower...

John, a man who takes pride in his yard, decided to buy a brand new lawnmower with extra features. He decided to buy the Bentley of lawnmowers, he went with a John Deere from Homedepot. On the first week of usage one of the wheels fell from the lawnmower, which caused the extra sharp blade to come lose. The blade spun around and cut John’s leg into pieces. John was rushed into the emergency room, which ended up costing him...

Subjects