Determine the following: The rate of simple interest. The corresponding discount rate.

Q: I borrowed $3650 from a bank for 8 months. The bank discounted the loan at 7.5%. How much interest…

A: We need to use simple interest formula below to calculate interest or discount on loan.Simple…

Q: years. The interest rate is i(12) = 8.750%. What is the outstanding balance on the loan just after…

A: The time value of money recognizes the idea that the value of an amount of money today differs from…

Q: 7. On April 1, Michael Reeves deposited a refund check for $240.85 in a savings account at Northern…

A: Simple interest is concept where the interest is never capitalized to the original loan/investment…

Q: Juan Pablo borrowed $1500 from a bank for 13 months. The bank discounted the loan at 5.7%. What is…

A: The loan discount refers to the loan in which the borrowers get the money after reducing the…

Q: John signed a 90-day note with a face value of $6,000 and a discount rate of 14.57%. How much did…

A: Ordinary time means day convention of 360 days. Here, the proceed or amount received from bank is…

Q: 8. On April 1, you opened a savings account at Main Street Savings Bank with a deposit of $817.25.…

A: A method of computing interest amounts in which the compounding effect was not considered by the…

Q: anice Dart signed a 140-day simple discount note at a rate of 9.9% with a maturity value of $82,000.…

A: calculation of Discount on original Note = Maturity value x Interest rate x (No.of days/365) =…

Q: Wayne signed a $10,000 note at Lynn Bank that charges a 7% discount rate. Use ordinary interest. If…

A: 7% discount rate is for 150 days.  1. To calculate proceeds, deduct interest from signed amount.  2.…

Q: Use the ordinary interest method, 360 days, to solve the fol problem. Round to the nearest cent when…

A: Interest amount on promissory note = note value (principal) x rate x time /100

Q: How much was the check he gave to the bank for payment?

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: how much money is requested from the bank if the simple interest rate is 9.766% a. 36,857.114 b.…

A: Simple interest refers to the amount paid by the borrower to bank on the amount borrowed at a fixed…

Q: Assume that Louisa carried an average balance of $1,000 from her credit card purchases over the past…

A: Interest charges are the amount of cost and charges paid for the amount borrowed either for personal…

Q: Dallas Pierce wants to know what rate she is paying on her simple discount note. The maturity value…

A: Understanding the rate on a simple discount note involves calculating the interest paid over a…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: A promissory note is a written agreement that outlines a borrower's promise to repay a specific…

Q: Shawn Bixby borrowed $37,000 on a 150-day, 10% note. After 70 days, Shawn paid $4,000 on the note.…

A: According to the US rule, the lender does not calculate interest until the payment has been made.…

Q: Tom took out a $20,000 loan for 146 days and was charged simple interest. The total interest he paid…

A: The simple interest rate calculates interest based solely on the initial amount of a loan or…

Q: Mr. VanJergen's credit card uses the average daily balance method for calculating interest. His…

A: For the purpose of calculating the finance charge on the credit card, there are different…

Q: Use the ordinary interest method, 360 days, to solve the following word problems. Round to the…

A: Discounted notes are issued at a discount to the face value and the discount depends on the interest…

Q: If Inez is charged an interest of $357.76 on a loan of $18946 for 2 months, calculate the rate of…

A: The amount of Interest (I) = $357.76The principal amount (P) = $18,946Time period (T)= 2…

Q: Mike Drago took out a for $3,900 at the Gold Coast Bank for 270 days. If the bank uses the ordinary…

A: Rate of Interest = Amount of Interest / (Principal * time)

Q: A man has a simple discount note for $6,100, at an ordinary bank discount rate of 8.53%, for 60…

A: Discount rate is 8.53% Time period 60 days Face value of note is $6,100 To Find: Effective interest…

Q: Gene McDonald's bank granted him a single-payment loan of $5,000 for 90 days at 9% ordinary…

A: A fundamental method of calculating interest in finance is called simple interest. It is calculated…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: Given, Simple discount amount = $28,500 Discount rate = 13% Note was made for = 116 days