Paul and Sandy Moede signed an $8,600 note at Citizen's Bank. Citizen's charges a 4.5% discount rate. Assume the loan is for 290 days. Find the proceeds. Note: Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent. Find the effective rate charged by the bank. Note: Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Paul and Sandy Moede signed an $8,600 note at Citizen's Bank. Citizen's charges a 4.5%
discount rate. Assume the loan is for 290 days. Find the proceeds. Note: Use 360 days a
year. Round your intermediate calculations and final answer to the nearest cent. Find the
effective rate charged by the bank. Note: Use 360 days a year. Do not round intermediate
calculations. Round your answer to the nearest tenth percent.
Transcribed Image Text:Paul and Sandy Moede signed an $8,600 note at Citizen's Bank. Citizen's charges a 4.5% discount rate. Assume the loan is for 290 days. Find the proceeds. Note: Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent. Find the effective rate charged by the bank. Note: Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent.
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