EARTHQUAKE DAMAGE A bridge in Japan was damaged by an earthquake. The firm repairing the bridge needs proceeds of 165 million Japanese yen (¥165,000,000) for 30 days to pay wages and buy supplies. A bank lends the funds at an 8% discount rate. Find (a) the face value and (b) the effective rate.

College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter8: Sequences And Series
Section8.4: Mathematics Of Finance
Problem 19E
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25. EARTHQUAKE DAMAGE A bridge in Japan was damaged by an earthquake. The firm
repairing the bridge needs proceeds of 165 million Japanese yen (¥165,000,000) for 30
days to pay wages and buy supplies. A bank lends the funds at an 8% discount rate. Find
(a) the face value and (b) the effective rate.
Transcribed Image Text:25. EARTHQUAKE DAMAGE A bridge in Japan was damaged by an earthquake. The firm repairing the bridge needs proceeds of 165 million Japanese yen (¥165,000,000) for 30 days to pay wages and buy supplies. A bank lends the funds at an 8% discount rate. Find (a) the face value and (b) the effective rate.
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