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Vilka [71]
3 years ago
6

lila gallo borrowed $10000 from her bank to build up the inventory of her stationery store. the loan was payable in six months a

t 12 percent interest per year, which the bank deducted in advance. how much money did lila actually receive/
Business
2 answers:
sesenic [268]3 years ago
5 0

Answer:

$9,400

Explanation:

generally bank loans collect their interests when the loan payments are due, e.g. every monthly payment includes a part that pays interests and another that reduces principal amount. In this case, Lila got a 6 month loan that requires a lump sum payment at the end of the sixth month, but the bank charges her interest in advance, which is a fancy way of actually charging a higher effective interest.

she will receive principal - (principal x interest charges) = $10,000 - ($10,000 x 12%/2) = $10,000 - $600 = $9,400

in this case, the interest rate that Lila is effectively paying = $600 / $9,400 =   6.38% semiannual or 12.77% annual

antiseptic1488 [7]3 years ago
4 0

Answer:

Explanation:

Amount actually received = Initial amount - interest payment

Interest payment = 10,000*12%/2 = 10,000*6% = 600

Amount actually received = 10,000-600 = $9,400

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Answer:

(B) 6.25%

Explanation:

January 1, 1997 = $100,000

April 1. 1997 = $103,000 - $8,000 = $95,000

January 1, 1999 = $103,992

annual interest rate for 1997 = i = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - ³/₁₂) = (x - 100,000 + 8,000) / [100,000 - 8,000(1 - 0.25) = (x - 92,000) / 94,000

x = 92,000 + 94,000i

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x = 103,992/(1 + i)

0 = x(1 + i) - 103,992

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0 = (94,000 (1 + i) - 2,000)(1 + i) - 103,992

we now replace 1 + i by Y

0 = (94,000Y - 2,000)Y - 103,992

0 = 94,000Y² - 2,000Y - 103,992

using a calculator, Y = 6.25%

4 0
3 years ago
A certain bookstore chain has two stores, one in San Francisco and one in Los Angeles. It stocks three kinds of books: hardcover
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Answer:

                           Hard       Soft        Plastic

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If the sales during the next five months were actually the same, then to determine total sales all we have to do is multiply January's sales by 6.

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400 x 6 = 2,400           300 x 6 = 1,800            500 x 6 = 3,000

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