Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 300-day note for $5,000 at 6% simple interest. (Both interest and principal are repaid at the end of the 300 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $5,177 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).

Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 300-day note for $5,000 at 6% simple interest. (Both interest and principal are repaid at the end of the 300 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $5,177 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).

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 5CE

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