Marchaund borrowed $4,500 for 90 days, with a 12% simple discount rate. What is the effective rate?O $135O 12%O 12.37%

It is given in the question that the borrowing was done at 12% simple discount rate. It should be…

Answered: Marchaund borrowed $4,500 for 90 days,…

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

Section: Chapter Questions

Problem 1PS

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Similar questions

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A loan carries a simple interest rate of 5.25 % . The loan was fully repaid by two $5000 payments made 8 and 11 months after the original date of the loan. How much was borrowed at the start? Multiple Choice $10,000 $9601.34 $9661.84 $9540.85 $9329.44
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Marchaund borrowed $4,500 for 90 days, with a 12% simple discount rate. What is the effective rate? O $135 O 12% O 12.37%