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.

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
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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.
Transcribed Image Text: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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