0 of 30 questions saved Question 13 (1 point) The bank discount of a $15,000 non
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0 of 30 questions saved Question 13 (1 point) The bank discount of a $15,000 non-interestaring, simple discount 12 percent, 80-day note is: Page 1: O1)$ 1,800 2) $14,600 3) $ 400 4) $15,400 5) None of the above 7 8 9 Save 101112 Question 14 (1 point) Ray Furniture wants to buy a dining room for $7,000 with a 20 percent trade discount. Ray needs the cash to pay the bill and is considering discounting a 90 day note dated May 12 with a maturity value of $6,500 at Hunt Bank at a discount rate of 13 percent on June 5. The bank discount if Ray discounts the note is 13 14 15 til : 1-1 16 17 18 1) $21125 2) $ 1400 3)$154 92 1911201121 22 2324 4) $212.15 5) None of the above 25 26 27 Save 28 2930 Question 15 (1 point) A $25,000 10% 90 day Treasury Bill would have an effective interest rate of: Legend 119.5% 2) 10% 3) 12.6% 4) 10.26% 5) None of the above E Saved Response Unsaved Response Info item SaveExplanation / Answer
13
Non interest bearing note = 15000 * (1/ (1+ .12*80/360) = $14,600
15.
Present value = 25000 * (1/ (1+.10*90/360) = $24,390.25
Interest rate = (609.75*4 / 24390.25) = 10%
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