Because simple interest is used on short-term notes, the time period is often given in days rather than months or years. We convert this to years by dividing by 360, assuming a 360 day year called a banker's year. To complete the sale of a house, the you accept a 340-day note for $7,000 at 6% simple interest. (Both interest and principal are repaid at the end of the 340 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $7,114 after 60 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage. %. Round to the nearest thousandths of a percent (3 decimal places).
Because simple interest is used on short-term notes, the time period is often given in days rather than months or years. We convert this to years by dividing by 360, assuming a 360 day year called a banker's year.
To complete the sale of a house, the you accept a 340-day note for $7,000 at 6% simple interest. (Both interest and principal are repaid at the end of the 340 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $7,114 after 60 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage.
%. Round to the nearest thousandths of a percent (3 decimal places).
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