Question

Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $19,500 at 8% for 2 years. Use ordinary interest as needed.



a. Calculate the simple interest note proceeds.

Can someone help me?
Simple interest note proceeds $


b. Calculate the simple discount note proceeds.


Simple discount note proceeds $

Answer 1

900.38

Answer 2

Find the simple interest owed for the use of the money. Assume 360 days in a year.
P=$5000.00, R=8.5%, T=9 months