To go on a summer trip, Michael borrows $800. He makes no payments until the end of 3 years, when he pays off the entire loan. The lender charges simpleinterest at an annual rate of 6%.Answer the following questions. If necessary, refer to the list of financial formulas.(a) How much total interest will Michael have to pay?$120(b) What will the total repayment amount be (including interest)?$920

Given information, Principal amount (P) = $800Time (t) = 3 yearsSimple interest rate (r) = 6% or…

Answered: To go on a summer trip, Michael borrows…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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