Question
Alex borrowed $5,000 on March 25, 2021 and signed a 6-month promissory note with a simple interest rate of r = 5%. Today (May 7th),
Alex borrowed $5,000 on March 25, 2021 and signed a 6-month promissory note with a simple interest rate of r = 5%. Today (May 7th), the note is sold to a bank for $5,067.10. What simple interest rate, r, did the bank use to determine the proceeds?
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Fundamentals Of Corporate Finance
Authors: Berk, Peter DeMarzo, Jarrad Harford
3rd Global Edition
1292018402, 9781292018409
