You were offered either a simple interest note or a simple discount note with the following terms: $33,353 at 7% for 18 months.a. Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest tenth percent.)   Effective Interest Rate   %

Q: An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a.…

A: Here, Face value = 5,500 Interest rate = 4.75% Discount rate = 6.75% Time to maturity = 180 days…

Q: If you sign a discount note for $7,500 at a bank discount rate of 9% for 9 months, what is the…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: A note with a face value of $4300 is discounted at 3%. If the discount was $21, find the length of…

A: Calculation of length of the loan in days:The length or duration of the loan is approximately 60…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: compute the proceeds that R receives on note: Bank discount=MV×Bank discount rate×Discount…

Q: Ricky Ripov's Pawn Shop charges an interest rate of 15 percent per month on loans to its customers.…

A: Effective annual rate = (1 + r)n - 1 r = interest rate per month n = number of months

Q: Marcela took out a $600 discounted loan with a 4% annual interest rate over a period of 8 months.…

A: Effective annual interest rate is referred as the interest rate which is adjusted for compounding…

Q: The balance on a credit card, that charges a 10.5% APR interest rate, over a 1 month period is given…

A: Interest rate = 10.5% Initial balance = $150  Number of days = 1-3 is 3 days Number of days = 4-20…

Q: You sign a simpie discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What…

A: Given: Discount rate = 5% Amount = $7,000 Period = 30 months

Q: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 24 months. What…

A: Discount = Amount*Interest rate*Time period/12   Proceeds= Principal Amount- Discount

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: Frist we need to calculate the bank discount by using this equation  Bank discount =Maturity…

Q: Use the ordinary interest method, 360 days, to solve the fol problem. Round to the nearest cent when…

A: Interest amount on promissory note = note value (principal) x rate x time /100

Q: Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The…

A: Interest rate can be calculated as: = Discount amount / Present value * 365/ Days to maturity * 100

Q: A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years…

A: Maturity amount (MV) = $12,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =…

Q: Cheong Ngo borrows $4000 from a bank that advertises a 7% simple interest rate and repays the loan…

A: Annual percentage rate (APR) define as annual interest paid on the borrowed amount. The approximate…

Q: A credit is paid as follows: a down payment corresponding to 30% of the value of the credit, 16…

A: Fist we need to calculate present value of all payments starting at 3 months after by using annuity…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: The promissory note is a legal instrument that is written by one party to another by making a…

Q: If you sign a discount note for $2500 at a bank discount rate of 7% for 3 months what is the…

A: The rate that is actually earned on an investment is called the effective interest rate. It is also…

Q: Find the discount and proceeds on a $3,240 face-value note for six months if the discount rate is…

A: Net Proceeds: It is the amount received by an individual after deducting a discount and expenses.

Q: elect the correct answer and explain What is the discount to a promissory note with a face value of…

A: In this we have calculate the discount on note using simple interest rate given.

Q: A loan is offered with monthly payments and a 14.50 percent APR. What’s the loan’s effective annual…

A: Calculate the effective annual rate (EAR) as follows:

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: An interest is the amount that has to be paid or received for the period of unpaid balance.

Q: If the company accepted a Notes Receivable on Oct 1, X1 for $60,000 at 8%, due in one year, what is…

A: Maturity value is the total amount including the interest on the Notes Receivable till it's maturity…

Q: What is the annual rate of interest being charged on a 3-month note receivable of $51,000 if the…

A: Introduction: A note receivable is a documented promise to pay a set amount of money to another…

Q: The face value of a simple interest note and bank discount note is $8,000each. Assume both notes…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: A credit card offers an introductory rate of 7% compounded monthly for the first six months,…

A: A credit card is a short-term credit facility provided by the banks to its customers. Interest is…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Interest rate per month in first six months would be (0.6%÷12) = 0.05%. Interest rate per month in…

Q: An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the…

A: Step 1 Discount of trade bills is short-term financing or credit facility provided by bank in which…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: The concept of the time value of money states that the current worth of money is more than its value…

Q: Need help with this question please. Thank you!

A: a. The computation of the monthly payment is shown below: Hence, the monthly payment is $306.88.…

Q: Mike Drago took out a for $3,900 at the Gold Coast Bank for 270 days. If the bank uses the ordinary…

A: Rate of Interest = Amount of Interest / (Principal * time)

Q: Rex Corporation accepted a $3,500, 5%, 120-day note dated August 8 from Regis Company in settlement…

A: Notes Receivables - Notes Receivables are the promise to pay money on the specified date with the…

Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…

A: Given, Simple discount amount = $28,500 Discount rate = 13% Note was made for = 116 days

Q: An interest-bearing note for 118 days at 6.4% p.a. simple interest has a face value of $4053. If the…

A: Notes are issued to discount that is interest and number of days to maturity of note. Proceeds from…

Q: You receive a credit card application from Shady Banks Savings and Loan offering an introductory…

A: Compound interest is concept in which the interest part is added to principal when interest is…

Q: Your bank is offering you an account that will pay 10% interest in total for a two-year deposit.…

A: Equivalent discount rate is referred as the real return on a saving account which computes interest…

Q: Jeff Rakhnovich has a simple discount note for $35,000 at an ordinary bank discount rate of 7%, for…

A: Annual Percentage Rate (APR) is the rate at which total amount of interest is paid.

Q: You were offered either a simple interest note or a simple discount note with the following terms:…

A: a. The computation of effective interest rate when offered simple interest note as follows:   The…

Q: Michael Jacobson signed a simple discount note with a face value of $ 8,400 at a discount rate of…

A: Discount Note is short-term debt instrument which is issued to raise short term debt for period less…

Q: Federal Savings Bank is offering a 6-month CD (certificate of deposit) with a rate of 4.5%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: You have just received an offer from a bank for a credit card with a quoted rate, or APR, of 18…

A: In the given question we need to compute the Effective annual rate (EAR).

Q: Kate Davidson signed a simple discount note for $9000 the discount rate is 5% and the term of the…

A: In finance, a simple discount note is a promissory note in which a borrower promises to repay the…

Q: The face value of a simple interest note and blank discount note is $8,000 each.   Assume both notes…

A: The provided information are: Face value for both simple interest note and blank discount rate =…

Q: Calculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary…

A: Bank discount  = face value  × discount rate × number of years

Q: The balance on a credit card, that charges a 12% APR interest rate, over a 1 month period is given…

A: A credit card refers to a facility provided by banks to its customers that customers can make the…

Q: loan is offered with monthly payments and a 10 percent APR. What’s the loan’s effective annual rate…

A: Effective Annual Rate = [(1+ Annual Periodic rate /n)n] -1  Annual Periods = 12 months

Q: The face value of a simple discount note is $17,000. The discount is 4% for 160 days. Calculate the…

A: Given information in question Simple discount note is $17,000 Discount is 4% for 160 days Purchase…

Q: A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that…

A: Given information is: Face value of Note = BD 2600 Period = 3 years Compound interest rate = 6% Bank…

Q: What does​ "2/10" mean, with respect to​ "credit terms of​ 2/10, n/30"?         A. A discount of 2…

A: Given, credit terms = 2/10, n/30 n/30 indicates that the payment should be made within 30 days from…