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Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 260-day note for $8,000 at 10% simple interest. (Both interest and principal are repaid at the end of the 260 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8,144 after 60 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage.

Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 260-day note for $8,000 at 10% simple interest. (Both interest and principal are repaid at the end of the 260 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8,144 after 60 days. What annual simple interest rate will the third party receive for the investment? Express your answer as a percentage.

College Algebra
College Algebra
7th Edition
ISBN:9781305115545
Author:James Stewart, Lothar Redlin, Saleem Watson
Publisher:James Stewart, Lothar Redlin, Saleem Watson
Chapter4: Exponential And Logarithmic Functions
Section4.1: Exponential Functions
Problem 57E: Compound Interest If $10,000 is invested at an interest rate of 3% per year, compounded...
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Simple Interest 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.
Transcribed Image Text:Simple Interest 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.
Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 260-day note for $8,000 at 10% simple interest. (Both interest and principal are repaid at the end of the 260 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8,144 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).
Transcribed Image Text:Use a banker's year described above to answer this question. To complete the sale of a house, the you accept a 260-day note for $8,000 at 10% simple interest. (Both interest and principal are repaid at the end of the 260 days.) Wishing to use the money sooner for the purchase of another house, the you sell the note to a third party for $8,144 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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