A merchant bought goods worth 8,000 riyals, paid half the price in cash, and agreed to pay the rest at the end of 6 months, and the seller deducted the bill once received and found that the trade discount is 1.08 of the correct discount. If you know that discount rate equals interest rate, Calculate the following: I) Interest rate. II) The basic value of the bill.

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Q: 4. A student took out a simple interest loan for $2800 for two years at a rate of 6% to purchase a…

A: The simple interest formula is: A=P(1+rt)