Question
A 180-day promissory note for $2000 bears 7% simple interest. After 60 days it is sold to a bank that charges a simple discount rate
A 180-day promissory note for $2000 bears 7% simple interest. After 60 days it is sold to a bank that charges a simple discount rate of 7%.
a)Calculate the price paid by the bank for the note.(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b)What simple interest rate did the original owner of the note actually earn?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
c)If the note is actually paid on the due date, what simple discount rate will the bank have realized?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
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