Sam and Ellen Rancher borrow $125,000 on January 15 and $175,000 on April 1 to purchase cattle. Sam and Ellen repay in three equal payments of $100,000 on March 1, June 1 and November 1. Calculate the total interest obligation if the interest rate is 7%, and interest is charged on the daily outstanding balance.

Answer rating: 100% (QA)

Interest obligation is the legal responsibility of a borrower or debtor to repay an amount of money ... View the full answer