Compute the missing amount for each of the following notes: Principal Annual Int
ID: 2558761 • Letter: C
Question
Compute the missing amount for each of the following notes:
Principal Annual Interest Rate Time Total Interest
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(a) $40,000 10% 2.5 years ?
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(b) $120,000 ? 9 months $7,200
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(c) ? 10% 90 days $1,500
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(d) $40,000 9% ? $1,200
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Explanation / Answer
(a) $10,000 ($40,000 × .10 × 2.5 years) = $10,000
(b) 8% ($120,000 × ? × 9 ÷ 12 = $7,200; ? = 8%)
(c) $60,000 (? × .10 × 90 ÷ 360 = $1,500; ? = $60,000)
(d) 4 months ($40,000 × .09 × ? = $1,200; ? = 4 ÷ 12)
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