Asked by Anonymous

a man has a simple discount note for $6,400 at an ordinary bank discount rate of 8.53% for 40 days what is the effective interest rate
Answered by Henry
I = Po*r*t = 6400*(0.0853/360)*40 = $60.66.

Effective rate = (60.66/6400) * 100% = 0.95%.

Answered by charlie
weiners
Answered by Anonymous
Find rhe effective rate of interest on a 12,000, 120-day, 12% discounted.
Answered by Chris
Why do you use 360 and not 365?
Answered by Anonymous
What is the effective interest rate of a simple discount note for ​$31 comma 40031,400​, at an ordinary bank discount rate of 1111​%, for 1010 ​days? Assume that there are 360 days in a year.
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