1.What is the effective interest rate of a simple discount note for $4,500 at a bank discount rate of 14% for 24 months? (Round to the nearest tenth percent.) A. 14.0% B. 19.4%     C. 28.0% D. 38.9%

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1.What is the effective interest rate of a simple discount note for $4,500 at a bank discount rate of 14% for 24 months? (Round to the nearest tenth percent.)

A. 14.0%
B. 19.4%    
C. 28.0%
D. 38.9%
 
2.Use the ordinary interest method to find the rate of interest that Make Over Picture Photo pays on a loan of $8,000 for 265 days, if the amount of interest is $510.00. (Round your answer to the nearest tenth percent.)
A. 7.5%
B. 8.4%    
C. 8.5%
D. 8.7%
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