BUSI 1003 Lecture Notes - Lecture 7: Promissory Note, 18 Months, Effective Interest Rate
11 Jun 2017
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A=p (1+r/n) nt where a=final amount, p=principal, r= interest rate (%) and n=the number of periods in a year. 171/2 years=t: a loan of was repaid together with interest of . 35. Let the (cid:374)u(cid:373)(cid:271)er of i(cid:374)terest period (cid:271)e (cid:858)(cid:374)(cid:859) 3. 331 years=t but since there 4 periods in each year with each period 3 months. Approximately 40 months: a promissory note for dated may 15, 2016, requires an interest payment of at maturity. If interest is at 9% compounded monthly, determine the due date of the note. Busi1003 marketing strategy apply formula a=p (1+r) n. 750=600(1. 09) n (1. 09) n=1. 25 n=log1. 25/log1. 09 n=2. 589=2months and 18 days. August 1st 2016: a financial agreement requires the payment of in 9 months, in 18 months, and in 30 months. When would an alternative single payment of have to be made if money is worth.
