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.
Face  Discount  Term  Bank  Effective  
Value  Rate (%)  (days)  Discount  Proceeds  Rate (%)  
15. $57,500 

230  _____________  _______________  __________ 
To calculate: The amount of bank discount, proceeds value and effective rate of interest where face value is
Given Information:
Face value is
Formula used:
The formula to calculate the time for ordinary interest is,
The formula to compute the amount of bank discount is,
The formula to calculate amount of proceeds is,
The formula to calculate effective rate of interest is,
Calculation:
Consider that face value of loan is
Compute the discount amount,
Simplify the discount rate as,
Evaluate the time as,
Substitute
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