Asked by SMART INVESTING on Sep 22, 2024
On January 15, Mario signed a contract to pay Stephan $12,000 plus 9% simple interest on May 15 and $18,000 plus 10% interest on September 12. On August 15, Stephan then sold the first contract to Sally at a rate of 11% and the other contract to Anna for 12%. Determine the amount Stephan received on August 15.
A) $33,333.33
B) $31,030.33
C) $30,130.33
D) $29,313.33
E) $26,613.33
Simple Interest
Interest calculated only on the initial principal amount of a loan or investment, without compounding.
- Calculate the genuine yield on investments sold ahead of their maturity.
Learning Objectives
- Calculate the genuine yield on investments sold ahead of their maturity.