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Empire Bank Loan Calculations

On April 30th,2007, Empire Bank loaned $100,000 to a customer on a one year, 9% note:

a) Compute the interest for the year ended December 31st, 2007 and 2008 for the customers note.

b) How much in total would the customer pay the bank if he pays off the note early, say on November 30th, 2007

Solution Preview

On April 30th, 2007, Empire Bank loaned $100,000 to a customer on a one year, 9% note:

a) Compute the interest for the year ended December 31st, 2007 and 2008 for the customers note.

First, you need to understand that the interest rate can be charge proportionately according to the months that the ...

Solution Summary

This solution is comprised of a detailed explanation to compute the interest for the year ended December 31st, 2007 and 2008 for the customers note and how much in total would the customer pay the bank if he pays off the note early, say on November 30th, 2007.

$2.19