1. Find the effective rate (APR) for a simple discount note. The maturity value is $10,000 with $148.80 interest accrued for 85 days. Round to the nearest hundredth of a percent. 2. You get a loan using the discount method. You sign a note, agreeing to repay the lender $10,000 in 90 days. Assuming a discount rate of 9%, determine the APR. Round to the nearest hundredth of a percent.

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. Find the effective rate (APR) for a simple discount note. The maturity value is $10,000
with $148.80 interest accrued for 85 days. Round to the nearest hundredth of a percent.
2. You get a loan using the discount method. You sign a note, agreeing to repay the lender
$10,000 in 90 days. Assuming a discount rate of 9%, determine the APR. Round to the
nearest hundredth of a percent.
Transcribed Image Text:1. Find the effective rate (APR) for a simple discount note. The maturity value is $10,000 with $148.80 interest accrued for 85 days. Round to the nearest hundredth of a percent. 2. You get a loan using the discount method. You sign a note, agreeing to repay the lender $10,000 in 90 days. Assuming a discount rate of 9%, determine the APR. Round to the nearest hundredth of a percent.
1. Find the effective rate (APR) for a simple discount note. The maturity value is $10,000
with $148.80 interest accrued for 85 days. Round to the nearest hundredth of a percent.
2. You get a loan using the discount method. You sign a note, agreeing to repay the lender
$10,000 in 90 days. Assuming a discount rate of 9%, determine the APR. Round to the
nearest hundredth of a percent.
Transcribed Image Text:1. Find the effective rate (APR) for a simple discount note. The maturity value is $10,000 with $148.80 interest accrued for 85 days. Round to the nearest hundredth of a percent. 2. You get a loan using the discount method. You sign a note, agreeing to repay the lender $10,000 in 90 days. Assuming a discount rate of 9%, determine the APR. Round to the nearest hundredth of a percent.
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