Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $20,050 at 8% for 3 years. Use ordinary interest as needed. a. Calculate the simple interest note proceeds. Simple interest note proceeds b. Calculate the simple discount note proceeds. Simple discount note proceeds
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- John Doe has a choice of two different notes that both have a a face value ( principal) of $15,000 for 60 days. One note has a simple interest rate of 8%, while the other note has a simple discount rate of 8%. For each type of note, calculate : a- interest owed b- maturity value c- proceeds, and d- effective rate. Which of the two choices is a better deal and why?In one instance, a financial institution loaned you $20,000 for two years at an apr of 4.75% for which you must make monthly payments. In a second instance, you loaned a financial institution $20,000 for two years at an apr of 4.75% compounded monthly. What is the difference in the amount of interest paid? Round your answer to the nearest centBecause 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 280-day note for $6,000 at 7% simple interest. (Both interest and principal are repaid at the end of the 280 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $6,179 after 40 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).
- Luke got a $10,400.00 face-value note for 250 days with a discount rate of 8.5%. A) Find the discount amount with 360-day year. B) Find the proceeds. C) Find the APR.Using the Simple Inteest equation, determine the lowest interest amount and the lowest monthly payments for borrowing $10,000 from the following offers: offer A:5years @ 7%offer B: 3years@ 9%offer C: 7years @ 6%The lowest interest paid is offer The lowest monthly payment is offerPaige is planning on depositing $1,000 in one of two different savings accounts from two financial institutions: MoneyFirst and MakeCents. The MoneyFirst account offers an interest rate of 0.15% APR, compounded monthly. The MakeCents account offers an interest rate of 0.14% APR, compounded weekly. Which is the better financial decision: the higher interest rate or the more frequent compounding? Higher interest rate More frequent compounding
- If you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the effective interest rate (as a %)?i need help working out these problems. Can you please explain in detail? Warren Ford borrowed $15,600 on a noninterest-bearing, simple discount, 60 day note at 4.5%. (assume ordinary 360 days) What is : a) the bank’s discount? b) Warren’s proceeds? c) the effective rate? Round your answer to the nearest hundredth of a percentWould you rather borrow $10,000 by issuing (a) a 90-day, 15 percent note or (b) a 90-day, discounted note discounted at 15 percent? Why or why not? Explain your answer based on what you have read about discounted note
- Suppose you want to purchase a $279,000 home, and you have the required $62,000 down payment in savings. Principal Interest Rate Terms (Yrs) Payments Total Total Payments Interest Of Loan Of Loan $217,000 4.000% 20 Complete the table below. Principal Interest Rate Terms (Yrs) Payments Total Pymts Total Interest $217,000 4.000% 20Imagine that you were approved for a $5000, 3 year, 12 percent loan with the finance charges figured using the discount method. How much cash will you received from this loan? $1800 $5000 $3350 $1670 $3200You decide to discount a$5250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. What are the proceeds?