Question: X Co. allows you to write a post-dated cheque for 130 INR dated 20 days in the future for which they give you 100 IN

X Co. allows you to write a post-dated cheque for 130 INR dated 20 days in the future for which they give you 100 IN today. If you are unable to pay off the loan, the interest is compounded every 20 days in a year. If you are unable to pay off the amount with interest for a year, how much is the amount due from your side to X Co.? What is the APR and EAR of this arrangement? (Assume 1 year = 360 days for calculations). (APR is Annual Percentage rate and EAR is Effective Annual rate).

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

X Co. allows you to write a post-dated cheque for 130 INR dated 20 days in the future for which they give you 100 INR today. If you are unable to pay off the loan, the interest is compounded every 20...

Calculator Calculator View Instructor Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. CI Co. allows you to write a post-dated cheque...

Q5 CICo. allows you to write a post-dated cheque for 120 INR dated 15 days in the future for which they give you 100 INR today. If you are unable to pay off the loan, the interest is compounded every...

This is subjective on bence you have to write your answer in the Text Field given below You have recently purchased a 10-year bond issued by Government of India in March 2012. However, owing to an of...

Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. CI Co. allows you to write a post-dated cheque for Rs 120 dated one month in the...

Question No: 05 This is a subjective question, hence you have to write your answer in the Text-Field given below. CI Co. allows you to write a post-dated cheque for Rs 115 dated one month in the...

get an anwer and solution of problem in both paper 1 full disclousure second revenue recognition IV. Test Questions and Solutions Chapter 1 Multiple Choice 1. What basic financial statements can be...

Please help answer all answers. Thank you. For questions 15 just skip. If anyone knows these answers I'm willing to pay more. 12. 17. 18. Which of the following is a feature in the QuickBooks App...

Ref. Ares(2013)1028126 - 08/05/2013 EUROPEAN COMMISSION DIRECTORATEGENERAL FOR ENERGY Deputy DirectorGeneral External policy & development of financial instruments Acting Director Directorate A...

Consider the expressions T - G and Y - T - C. Which of thefollowing statements is correct? Each one of these is equal to national saving. Each one of these is equal to public saving. The first of...

Last year, Tucker Electronics decided to try to do something about turnover among assembly-line workers at its plants. It implemented two trial personnel policies, one based on an improved hiring...

Miguel and Leylah make a $ 5 6 0 house payment every other week. Their loan is an example of a a . biweekly mortgage . b . growing - equity mortgage. c . reverse mortgage . d . graduated - payment...

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".