Homework Clinic

Mathematics Clinic => Grade 11 and 12 Mathematics => Topic started by: EAugust on Jun 6, 2019

Title: Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. ...
Post by: EAugust on Jun 6, 2019

Question 1

CIBC approved a $10 000 personal line of credit on a demand basis to Tara, who takes an advance of $2240 on 1st of every month to settle her monthly budget. She settles her loan when she receives her pay on 15th of every month. Interest at the rate of prime (3%) plus 2.75% is charged to the account at the bank on the 15th of each month. What is Tara's payment each month to settle the loan?
◦ $2263.63
◦ $2245.29
◦ $5.29
◦ $2368.80
◦ $2240

Question 2

Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. Compute the present value on the date of issue of a non-interest-bearing, worth $850 000, three-month promissory note dated September 1, 2013 (plus 3 days of grace), if money is worth 12.5% in Oman.
◦ $877 363
◦ $847 272
◦ $823 490
◦ $26 510
◦ $824 311

Title: Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. ...
Post by: gstein359 on Jun 6, 2019

Answer 1

$2245.29

Answer 2

$823 490

Title: Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. ...
Post by: EAugust on Jun 6, 2019

Thank you!

Title: Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. ...
Post by: gstein359 on Jun 6, 2019

Always glad to help...