Problem #1. While window shopping at you local mall you see the following advertisement. "Really nice noise cancelling on-ear headphones are now on sale! 18% off! Only $149.99!"

(a) What is the original selling price of the headphones on sale if the $149.99 sale price represents 18% off?

(b) How much did the store pay for the headphones if the initial markup was 135% based on cost?

(c) What is the percent markup based on selling price?

(d) If next month the headphones are going to be on sale for $124.99, what is the markdown percent from the original price?

Problem #2. You signed a $45,000 simple discount promissory note at your local bank. The discount rate was 11% ordinary interest, and the note was made on March 1st for 100 days.

(a) What proceeds did you receive on the note?

(b) What was the maturity date of the note?

(c) What was the effective interest rate of the note? Round your answer to the nearest hundredth of a percent.