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majarm majarm
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4 years ago
You owe $3572.75 in 147 days and have decided to pay off your loan early. Your interest rate is 6.52%. What is the size of the cheque that you write today to pay off all of your debt?
A) $4381.33
B) $3481.33
C) $3581.33
D) $3381.33
E) $3814.33
Textbook 

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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SupremeSupreme
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Posts: 374
4 years ago Edited: A week ago, bio_man
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B

In the given scenario

Future value of the loan = 3572.75

Term = 147 days

Rate= 6.52%

Assuming a 365 day year

Present value of the loan= Future value/ (1+rate)^n

= 3572.75/ (1+6.52%/365)^147

= 3572.75/ 1.026604018

= 3480.16

Hence $3480.16 has to be paid to settle the loan.

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