Homework Help: Business Maths

Posted by Ekanki on Monday, April 23, 2012 at 9:58pm.

May. 10, 2010, Leven Corp. negotiated a short-term loan of $705,000. The loan is due Oct. 2, 2010, and carries a 7.06% interest rate. Use ordinary interest to calculate the interest.

What is the total amount Leven would pay on the maturity date?(Use table value.) (Use 360 days a year. Do not round intermediate calculations. Round your answer to two decimal places. Omit the "$" sign in your response.)

Business Maths - Ekanki, Monday, April 23, 2012 at 10:07pm
Maturity value $ 725,047.45
Explanation:
Due date of loan Oct. 2 = 275 day of year
Date of loan May. 10 = - 130 day of year
__________________
145 days on loan (time)
__________________
P R T
$705,000 × 0.0706 × 145/360 =$20,047.46
Interest
$ 705,000.00 P
+20,047.46 I
____________________
$ 725,047.46

Answer this Question

Related Questions

business math - Term of Loan/Date of Loan using Banker's Rule? I need helps ...
math % - I loaned Johnnie $5000.00 to be repaid $250.00 monthly loan past due ...
Business Finance - When a bank borrows 550,000 from the FED snd received s short...
Economics - The owners of a successful restaurant want a loan for $50,000 to ...
Corporate law - At a closing at 10 a.m. on May 3, 2005, X Corp. delivers $25,000...
Business finance - In a discount interest loan, you pay the interest payment up...
Math - $10,000.00 loan at 8% to be paid in full in 88 months. How much interest ...
MAth - 1. John’s loans for his business total $155,000. One of the loans is...
accounting - Cooper Construction Company had a contract starting April 2010, to ...
account - On May 1, 2010, Newby Corp. issued $600,000, 9%, 5-year bonds at face ...

For Further Reading

First Name:
School Subject:
Answer: