please answer me 7,8,9 7. C effective interest rate to nearest hundredth percen

Question

please answer me 7,8,9

7. C effective interest rate to nearest hundredth percen or the following simple discount (use 360 days), and (c) the S12.000 10% (face) (dise, rate) (time) 125 days 8. A simple discount note results in A. Lower interest costs than a simple interest note B. Same interest costs as a simple interest note C. Interest deducted when note is paid back D. Interest deducted in advance E. None of these 9. On March 12, Bal Jones accepted a $12,000 note in granting a time extension of a bill for goods purchased by Ron Prentice. Terms of discounted the note at Able Bank at a discount rate of 14% The proce ed to Ba s use a 0 da and the note were 13% for 90 days. On Apri 24, Bil ould no lorger wait for them A. $12,047.90 B. $12,163.54 C. $12,390.00 D. $12,048.90 E. None of these 10. Use 360 days to solve foe this interest bearing note that is to be discounted;

Explanation / Answer

7. A = 12,000 X 0.1 X 125/360 = $416.67

B. $11,583.33

C. 10.36%

8. Option D- interest deducted in advance

9. option B- $12,163.54

12,000 X 0.13 X 90/360 = 390

12,390 X 0.14 X 47/260 = 226.46

Proceeds = 12,390-226.46 = $12,163.54

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.