per annum rate of simple interest?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:So,
Asher cashed in a one-year term deposit after only five months had elapsed. In order to do
he accepted an interest rate penalty-a reduction from the scheduled 5.5% rate of simple
interest. If he was paid $145.83 interest on the $10,000 term deposit, what reduction was
made in the per annum rate of simple interest?
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