Asked by Randy Aceituno on May 13, 2024
Verified
Maurice borrowed $6,000 from Heidi on April 23 and agreed to make payments of $2,000 on June 1 and $2,000 on August 1, and to pay the balance on October 1. If simple interest at the rate of 10% was charged on the loan, what is the amount of the third payment?
Simple Interest
Interest calculated only on the initial principal amount of an investment or loan, without compounding.
Third Payment
The payment that occurs as the third in a series or schedule of payments.
Borrowed
Refers to money obtained with an agreement to return it, usually with interest.
- Determine the value, whether future or present, of investments under different rates of interest.
- Compute the initial amounts invested using the interest accrued and the period of investment.
Verified Answer
CV
Learning Objectives
- Determine the value, whether future or present, of investments under different rates of interest.
- Compute the initial amounts invested using the interest accrued and the period of investment.