A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest):

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter16: Working Capital Policy And Short-term Financing
Section: Chapter Questions
Problem 18P
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A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of
interest is (assume ordinary interest):
O $544.00
O $1,600.00
O $546.67
O $547.20
Transcribed Image Text:A $40,000 loan at 4% dated June 10 is due to be paid on October 11. The amount of interest is (assume ordinary interest): O $544.00 O $1,600.00 O $546.67 O $547.20
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