BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

Solutions

Chapter
Section
BuyFindarrow_forward

Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

Using ordinary interest (360 days), calculate the bank discount, proceeds, and effective rate for the following simple discount notes. Round effective rate to the nearest hundredth of a percent.

22. $22,500 10 1 2 60

To determine

To calculate: The amount of bank discount, proceeds value and effective rate of discount where face value is $22,500, the ordinary discount rate is 1012%, the time period is 60 days.

Explanation

Given Information:

Face value is $22,500, the discount rate is 1012%, the time period is 60 days.

Formula used:

The formula to compute the amount of bank discount is,

Bank Discount=Face value×Discount Rate×Time

The formula to calculate the amount of proceeds is,

Proceeds=Face valueDiscount

The formula to calculate the effective rate of discount is,

Effective interest rate=InterestPurchase Price×Time

Calculation:

Consider that the face value of the loan is $22,500, the discount rate is 1012% and the time period is 60 days.

Simplify the discount rate as

1012%=212%=10.5%=10.5100=0.105

Evaluate the time as

Time=Number of days of a loan360=60360

Substitute $22,500 for face value, 0.105 for the discount rate and 60360 for time in the formula Bank Discount=Face value×Discount Rate×Time as,

Bank Discount=Face value×Discount Rate×Time=22,500×0.105×60360=$393.75

Hence, the amount of discount is $393

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Chapter 10 Solutions

Show all chapter solutions add
Sect-10.I P-5RESect-10.I P-6RESect-10.I P-7RESect-10.I P-8RESect-10.I P-9RESect-10.I P-10RESect-10.I P-11RESect-10.I P-12RESect-10.I P-13RESect-10.I P-14RESect-10.I P-15RESect-10.I P-16RESect-10.I P-17RESect-10.I P-18RESect-10.I P-19RESect-10.I P-20RESect-10.I P-21RESect-10.I P-22RESect-10.I P-23RESect-10.I P-24RESect-10.I P-25RESect-10.I P-26RESect-10.I P-27RESect-10.I P-28RESect-10.I P-29RESect-10.I P-30RESect-10.I P-31RESect-10.I P-32RESect-10.I P-33RESect-10.I P-34RESect-10.I P-35RESect-10.I P-36RESect-10.I P-37RESect-10.I P-38RESect-10.I P-39RESect-10.I P-40RESect-10.I P-41RESect-10.I P-42RESect-10.I P-43RESect-10.I P-44RESect-10.I P-45RESect-10.I P-46RESect-10.I P-47RESect-10.II P-7TIESect-10.II P-8TIESect-10.II P-9TIESect-10.II P-10TIESect-10.II P-1RESect-10.II P-2RESect-10.II P-3RESect-10.II P-4RESect-10.II P-5RESect-10.II P-6RESect-10.II P-7RESect-10.II P-8RESect-10.II P-9RESect-10.II P-10RESect-10.II P-11RESect-10.II P-12RESect-10.II P-13RESect-10.II P-14RESect-10.II P-15RESect-10.II P-16RESect-10.II P-17RESect-10.II P-18RESect-10.II P-19RESect-10.II P-20RESect-10.II P-21RESect-10.II P-22RESect-10.II P-23RESect-10.II P-24RESect-10.II P-25RESect-10.II P-26RESect-10.II P-27RESect-10.II P-28RESect-10.II P-29RESect-10.II P-30RESect-10.II P-31RESect-10.II P-32RESect-10.II P-33RESect-10.II P-34RESect-10.II P-35RESect-10.II P-36RESect-10.II P-37RESect-10.III P-11TIESect-10.III P-12TIESect-10.III P-13TIESect-10.III P-14TIESect-10.III P-1RESect-10.III P-2RESect-10.III P-3RESect-10.III P-4RESect-10.III P-5RESect-10.III P-6RESect-10.III P-7RESect-10.III P-8RESect-10.III P-9RESect-10.III P-10RESect-10.III P-11RESect-10.III P-12RESect-10.III P-13RESect-10.III P-14RESect-10.III P-15RESect-10.III P-16RESect-10.III P-17RESect-10.III P-18RESect-10.III P-19RESect-10.III P-20RESect-10.III P-21RESect-10.III P-22RESect-10.III P-23RESect-10.III P-24RESect-10.III P-25RESect-10.III P-26RESect-10.III P-27RESect-10.III P-28RESect-10.III P-29RECh-10 P-1CRCh-10 P-2CRCh-10 P-3CRCh-10 P-4CRCh-10 P-5CRCh-10 P-6CRCh-10 P-7CRCh-10 P-8CRCh-10 P-9CRCh-10 P-10CRCh-10 P-11CRCh-10 P-12CRCh-10 P-13CRCh-10 P-14CRCh-10 P-1ATCh-10 P-2ATCh-10 P-3ATCh-10 P-4ATCh-10 P-5ATCh-10 P-6ATCh-10 P-7ATCh-10 P-8ATCh-10 P-9ATCh-10 P-10ATCh-10 P-11ATCh-10 P-12ATCh-10 P-13ATCh-10 P-14ATCh-10 P-15ATCh-10 P-16ATCh-10 P-17ATCh-10 P-18ATCh-10 P-19ATCh-10 P-20ATCh-10 P-21ATCh-10 P-22ATCh-10 P-23ATCh-10 P-24ATCh-10 P-25ATCh-10 P-26ATCh-10 P-27ATCh-10 P-28ATCh-10 P-29ATCh-10 P-30ATCh-10 P-31ATCh-10 P-32ATCh-10 P-33ATCh-10 P-34ATCh-10 P-35ATCh-10 P-36ATCh-10 P-37AT

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Explain the difference between a matched-subjects design and a repeated-measures design.

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Let f(x) = {x21if2x1x3if1x2 Find (a) limx1 f(x) and limx1+ f(x). Is f continuous at x = 1? Explain.

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Find the slope and y-intercept of the lines and draw its graph. 38. 2x 5y = 0

Single Variable Calculus: Early Transcendentals, Volume I

Factor each trinomial completely: 2w212w32

Elementary Technical Mathematics

Find all possible real solutions of each equation in Exercises 3144. y32y22y3=0

Finite Mathematics and Applied Calculus (MindTap Course List)

Sketch the region in the xy-plane. 46. {(x, y) | x 1 and y 3}

Single Variable Calculus: Early Transcendentals

Rewrite 10x2xdx using a trigonometric substitution. a) cos10sind b) 110sincos2d c) 10cos2sind d) 10sincosd

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Which is the best graph of r = 1 − sin θ for 0 ≤ θ ≤ π?

Study Guide for Stewart's Multivariable Calculus, 8th

Describe the major elements of the APA ethical guidelines for nonhuman subjects in research.

Research Methods for the Behavioral Sciences (MindTap Course List)