Question

On April 18, Michelle Lizaro borrowed $4,000 from her credit union at 9% for 100 days. The credit union uses the ordinary interest method. (a) What is the amount (in $) of interest on the loan? $ 98.95 Incorrect: Your answer is incorrect. (b) What is the maturity value (in $) of the loan?

          On April 18, Michelle Lizaro borrowed $4,000 from her credit union at 9% for 100 days. The credit union uses the ordinary interest method. (a) What is the amount (in $) of interest on the loan? $ 98.95 Incorrect: Your answer is incorrect. (b) What is the maturity value (in $) of the loan?
        
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Elementary Statistics a Step by Step Approach
Elementary Statistics a Step by Step Approach
Allan G. Bluman 9th Edition
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On April 18, Michelle Lizaro borrowed $4,000 from her credit union at 9% for 100 days. The credit union uses the ordinary interest method. (a) What is the amount (in $) of interest on the loan? $ 98.95 Incorrect: Your answer is incorrect. (b) What is the maturity value (in $) of the loan?
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Transcript

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00:01 Alright, as we look at this situation, we know our principal value of our loan is $18 ,000.
00:10 I is going to be our interest rate, which in this case is 6 .8%.
00:17 And we actually want to divide it by 12...
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