Suppose 7788 Corp. borrowed $1million at a rate of 9% simple interest, with interest paid at the end of each month. How much interest would the firm have to pay for a 30-day period: a. If the bank uses a 360-day year? b. What would the interest be if the bank used a 365-day year? 2. Suppose you borrowed 30,000 from your friend at a rate of 8% and must repay it in three equal installments at the end of each of the next 3 years. a. How large would your payments be? b. How much of the first payment would represent interest? c. How much would be principal repayment amount after the first year? d. What would your ending balance be after the first year

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Lets solve each part of the question step by step For the first part a If the bank uses a 360day yea... View the full answer