Finance

posted by .

John borrowed $1,000 discounted at 10% for six months. How much did he receive when the loan was made?

I get $952.38 by using the formula below:

1000=P(1+.10/2)^(.5*2) - am I doing this right?

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    Determine the amount of each payment to be made to a sinking fund in order that enough money will be available to pay off the following loan. $29,000 loan, money earns 12% compounded annually, 42 months. I tired doing this using the …
  2. FINANCE

    Crimini Foods is offered a $400,000 line of credit for six months at an APR of 10%. This loan has a loan origination fee of 2%. What is the actual six-month interest rate paid, expressed as an EAR
  3. Finance

    Crimini Foods is offered a $400,000 line of credit for six months at an APR of 10%. This loan has a loan origination fee of 2%. What is the actual six-month interest rate paid, expressed as an EAR
  4. Math

    1. Jacksonville Technical College received $3,445,553 in state aid on September 15 for the fall academic semester. The vice-president for finance decided to invest $2,000,000 in a 2-month investment that pays 11.5% simple interest. …
  5. Math

    Acton choose from two loans offersS: 12,000 at 8% simple interest for 9 months: or a 12,000 9 month discounted loan at 7% discount. Based on the actual interest paid and the true rate on the discounted loan, which of the two loan offers …
  6. math for business and finance

    dick hercher borrowed $7,000 to travel to london. his loan is to be paid in 48 monthly installments of $190. at the end of 14 months, dick decides to pay off his loan. what is the final payoff dick will make?
  7. Math

    Euromart Tile Company borrowed $40,000 on April 6 for 66 days. The rate was 14% using the ordinary interest rate method. On day 25 of the loan, Euromart made a partial payment of $15,000, and on day 45 of the loan, Euromart made a …
  8. business

    Euromart Tile Company borrowed $40,000 on April 6 for 66 days. The rate was 14% using the ordinary interest rate method. On day 25 of the loan, Euromart made a partial payment of $15,000, and on day 45 of the loan, Euromart made a …
  9. math

    Euromart Tile Company borrowed $40,000 on April 6 for 66 days. The rate was 14% using the ordinary interest rate method. On day 25 of the loan, Euromart made a partial payment of $15,000, and on day 45 of the loan, Euromart made a …
  10. maths

    Gary can get two loan, $12,000 at 8% simple interest for 9 months or a $12000 9- month discounted loan at 7% discount. based on the actual interest paid and the true rate on the discounted loan, which of the two loan offers will Gary …

More Similar Questions