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Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
Edition 12ISBN: 978-0132605540 Exercise 31
Solve the following application problems. If no interest rate is given, assume
interest compounded daily. Round to the nearest cent.
PUTTING UP COLLATERAL Joni Perez needs to borrow $20,000 to open a welding shop, but the bank will not lend her the money. Joni's uncle agrees to put up collateral for the loan with a $20,000, 4-year certificate of deposit paying 4, compounded daily. This means that the bank will take all or part of his deposit if Perez should fail to repay the loan. Find (a) the compound amount earned by her uncle __________________ and (b) the interest earned by her uncle. __________________
interest compounded daily. Round to the nearest cent. PUTTING UP COLLATERAL Joni Perez needs to borrow $20,000 to open a welding shop, but the bank will not lend her the money. Joni's uncle agrees to put up collateral for the loan with a $20,000, 4-year certificate of deposit paying 4, compounded daily. This means that the bank will take all or part of his deposit if Perez should fail to repay the loan. Find (a) the compound amount earned by her uncle __________________ and (b) the interest earned by her uncle. __________________
Explanation
Verified
Verified
Suppose interest compounded daily.
The ...
Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller
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