You are an officer at the bank.

Using several sentences, write up an offer to your classmate's business for a discount note to purchase their asset(s) instead of a simple interest loan. Offer your classmate's business a simple discount note for the total price of the asset(s) at an ordinary bank discount rate of 4% for 90 days. Calculate the bank discount, proceeds, and effective interest rate. Show all steps in your calculations. Using several sentences, discuss with your classmate the differences between the simple interest loan and the bank discount note you are offering.

Include these items in your post:

Discount note offer

Total price of asset(s) purchased

Bank discount, proceeds, and effective interest rate

Steps in calculation

Discussion of differences

Responding to:

Our newest establishment Row Communications Inc. has been hitting its stride as of late and we need 10 new laptops priced at $1000 each to accommodate our expansion. We have decided to purchase 10 laptops from Dell Technologies. XPS 13 Laptop - Dell XPS 13-inch Laptop Computers | Dell USA

$1000 * 10 = $10,000

The total purchase price for 10 new laptops is $10,000.

Today is December 1st and my dog's birthday is May 15. December is the 335th day of the year, and May 15 is the 135th day of the year.

335 - 135 = 200days

The amount of interest we will pay is

$10,000 x .045 x 200 / 365 = 246.58

Maturity value is: $10,000 + 246.58 = $10,246.58

These new laptops will be necessary for the 10 new employees we have hired to us serve our clients.