Mickey Sporn took out a loan for $5,880 at the Linville Ridge Bank for 110 days. The bank uses the ordinary method for calculating interest. What rate of interest was charged if the amount of interest was $275? Round to the nearest tenth of a percent.

Mickey Sporn took out a loan for $5,880 at the Linville Ridge Bank for 110 days. The bank uses the ordinary method for calculating interest. What rate of interest was charged if the amount of interest was $275? Round to the nearest tenth of a percent.

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

ChapterD: Notes Payable And Notes Receivable

Section: Chapter Questions

Problem 2P

See similar textbooks

Related questions

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: On October 31, Sarah Willis borrowed $5,600 from the Vestal Central Bank. She gave the bank her…

A: The question is based on the concept of discounting notes. Notes are a debt financial arrangement…

Q: 1. A bank is offering to sell certificates of deposit valued at $ 5,000.00. At the end of 3 years,…

A: Solution:- Given, A Bank Deposited Value = $5,000 At the end of 3 years = $5,310 Interest for 3…

Q: 1. On August 1 you opened a new savings account with a deposit of $1,400. The interest rate paid by…

A: Initial deposit on August 1 is :

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

A: Since the maturity value is know which is $27,500 Discount Rate = 16% Made on 15 February Days till…

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: Karen's Katering borrows $5,500, at 8.5% interest, for 220 days. If the bank uses the exact interest…

A: The objective of the question is to calculate the exact interest that the bank will collect on a…

Q: On May 1, Cleveland Livingston opened a savings account that paid 3.5% interest at Fulton Savings…

A: Saving account: A savings account is an interest-bearing deposit account with a bank or other…

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

A: Simple Interest: It is the interest amount calculated by charging the interest rate on the…

Q: 6. On May 1, Cleveland Livingston opened a savings account that paid 3.5 percent exact interest at…

A: Deposit 1 (D1) = $5000 on day 0 Deposit 2 (D2) = $2000 at day 10 Deposit 3 (D3) = $8000 at day 24 We…

Q: Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10%…

A: The time to pay off the debt, the installment, beginning, and ending balances can be seen from the…

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: A certificate of deposit(CD) is a type of savings account that offers a higher interest rate than a…

Q: Jefferson bank made a loan at 7 interest for 238 days. If the amount of interest was $300.81 use the…

A: Interests expense refers to the amount that is charged on the borrowed money by the lender as the…

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: Alana Olsen borrowed $5,000 for 90 days from First Bank. The bankdiscounted the note at 7 percent.a.…

A: Borrowed amount=$5000Discount rate=7%Time period=90days

Q: A bank pays an interest of 6.8% for a 6 month term deposit. Calculate the amount that Stacy must…

A: Interest=$480.47Rate=6.8%Time=6 monthsRequired:Principal amount of investment =?

Q: Springer Products wishes to borrow $90,000 from a local bank using its accounts receivable to…

A: Accounts receivable as collateral: If business utilizes its accounts receivable asset as…

Q: Jefferson Bank made a loan at 7% interest for 238 days. If the amount of interest was $300.81, use…

A: Interest rate = r = 7% Time = t = 238 days Interest amount = i = $300.81 Number of days under…

Q: Jack Abrams borrowed $8,000 for nine months at an interest rate of 7% (simple interest). The bank…

A: Actual interest rate is computed below:

Q: The following certificate of deposit (CD) was released from a particular bank. Find the compound…

A: Principal amount is $2500 Interest rate is 6% Compounded daily Time period is 2 years To Find:…

Q: Enzo borrowed $4800 from the bank for 18 months. The bank discounted the loan at 4.7%. How much was…

A: Discounted Loan is a type of loan in which amount received from the bank is reduced by the interest…

Question

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Alana Olsen borrowed $5,000 for 90 days from First Bank. The bankdiscounted the note at 7 percent.a. What proceeds did Olsen receive?b. What is the effective rate to the nearest basis point?
Mike Drago took out a for $3,900 at the Gold Coast Bank for 270 days. If the bank uses the ordinary interest method, what rate (in %) of interest was charged if the amount of interest was $239? Round your answer to the nearest tenth of a percent.
Juan Pablo borrowed $1500 from a bank for 13 months. The bank discounted the loan at 5.7%.What is the loan's discount?$What is the net amount of money Juan Pablo receives?$What is the loan's actual rate of interest? (to the nearest hundredth of a percent)
On October 31, Sarah Willis borrowed $5,600 from the Vestal Central Bank. She gave the bank her 90-day note for that amount. The note was dated october 31, and the exact interest rate was 12%. a-Find the date of maturity for the note. b-How much did Sarah pay to the bank on the maturity date?
Ted Eisenstadt borrowed $5,600 from his bank for 4 months with interest at 9%. Ted paid the note in full on it's due date. How much was the check he gave to the bank for payment?
Karen's Katering borrows $5,500, at 8.5% interest, for 220 days. If the bank uses the exact interest method, how much interest will the bank collect? (Round to the nearest cent.) $281.78 $285.69 $300.10 $467.50
Suppose that you owe $2500 on a credit card that charges 18% APR and you pay either the minimum, 10% or $20 whichever is higher, every month. How long will it take you to eliminate the debt?. Assume that the bank uses the previous balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.
Suppose that you owe $2,000 on a credit card that charges 18% APR and you pay either the minimum 10% or $20, whichever is higher, every month. How long will it take you to eliminate the debt? Assume that the bank uses the previous-balance method to calculate your interest, meaning that the bank does not subtract the amount of your payment from the beginning balance but charges you interest on the previous balance.
On May 1, Cleveland Livingston opened a savings account thatpaid 3.5% interest at Fulton Savings Bank with a deposit of $5,000.Ten days later, he deposited $2,000. Fourteen days later, he deposited$8,000. No other deposits or withdrawals were made. Six days later,the bank calculated the daily interest.a. How much simple interest did his money earn?
The following certificate of deposit (CD) was released from a particular bank. Find the compound amount and the amount of interest earned by the following deposit. $2500 at 6% compounded daily for 2 years. What is the compound amount? (Round to the nearest cent.)
Hernandez Engineering borrows $5,500, at 6 1 2 % interest, for 150 days. If the bank uses the ordinary interest method, how much interest (in $) will the bank collect? (Round your answer to the nearest cent.)
Juan dela Cruz borrowed money from a bank. He received P1, 340 and promised to pay P1, 500 at the end of 9 months. Determine the following:The rate of simple interest.The corresponding discount rate.