Mary wants to buy a new car but needs money for the down payment. Herparents agree to lend her money at an annual rate of 5%, charged as simpleinterest. They lend her s7000 for 3 years. She makes no payments except theone at the end of that time.Answer the following questions. If necessary, refer to the list of financial formulas.(a) How much total interest will Mary have to pay?(b) What will the total repayment amount be (including interest)?

Simple interest is plain simple and there is no interest on interest and so there is no compounding…

рауm parents agree to lend her money at an annual rate of 5%, charged as sir interest. They lend her s7000 for 3 years. She makes no payments except one at the end of that time. Answer the following questions. If necessary, refer to the list of financial formul |(a) How much total interest will Mary have to pay? |(b) What will the total repayment amount be (including interest)?

рауm parents agree to lend her money at an annual rate of 5%, charged as sir interest. They lend her s7000 for 3 years. She makes no payments except one at the end of that time. Answer the following questions. If necessary, refer to the list of financial formul |(a) How much total interest will Mary have to pay? |(b) What will the total repayment amount be (including interest)?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter3: Income Sources

Section: Chapter Questions

Problem 57P

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