Question
You were offered the opportunity to purchase either a simple interest note or a simple discount note with the following terms: $33,353 at 7% for
| You were offered the opportunity to purchase either a simple interest note or a simple discount note with the following terms: $33,353 at 7% for 18 months. |
| a. | Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest tenth percent.) |
| Effective interest rate |
| b. | Based on the effective interest rate, which would you choose? | ||
|
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Advanced Engineering Mathematics
Authors: ERWIN KREYSZIG
9th Edition
0471488852, 978-0471488859
