1. A one year note with a face value of $20,000 is discounted 10 % and is sold to a third party. The note pays 5 percent interest per year. What is the third party’s rate of return?

2. What is the net price of a $30 item after successive discounts of 20 % and 30 %?

3. On March 4, Allen Clark borrowed $3,000 at 4 ½ % interest for 1 year and 3 months, what is the interest? Calculate using simple interest.