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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.)

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

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