Question

After buying a new car, Jim decides to sell his old car to a friend Mark. Jim accepts a 130 day note for $6,678.54 at 8.5% exact simple interest as payment (both principal and interest will be paid at the end of 130 days). 92 days later, Jim finds that he needs the money and sells the note to a third party for $6,710.00. What annual exact simple interest rate will the third party receive for the investment? (Assume a 365-day year.)

          After buying a new car, Jim decides to sell his old car to a friend Mark. Jim accepts a 130 day note for $6,678.54 at 8.5% exact simple interest as payment (both principal and interest will be paid at the end of 130 days). 92 days later, Jim finds that he needs the money and sells the note to a third party for $6,710.00. What annual exact simple interest rate will the third party receive for the investment? (Assume a 365-day year.)

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After buying a new car, Jim decides to sell his old car to a friend Mark. Jim accepts a 130 day note for 6,678.54 at 8.5% exact simple interest as payment (both principal and interest will be paid at the end of 130 days). 92 days later, Jim finds that he needs the money and sells the note to a third party for $6,710.00. What annual exact simple interest rate will the third party receive for the investment? (Assume a 365-day year.)

Added by Chad S.

Elementary and Intermediate Algebra

Alan S. Tussy, R. David Gustafson 5th Edition

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Solved by Expert Supreeta N

08/31/2023

Step 1

Interest = Selling price - Principal Interest = $6,710.00 - $6,678.54 Interest = $31.46 Show more…

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After buying a new car, Jim decides to sell his old car to a friend Mark. Jim accepts a 130 day note for $6,678.54 at 8.5% exact simple interest as payment (both principal and interest will be paid at the end of 130 days). 92 days later, Jim finds that he needs the money and sells the note to a third party for $6,710.00. What annual exact simple interest rate will the third party receive for the investment? (Assume a 365-day year.) % (Note: Your answer should be correct to two decimal places to be counted as correct.) After buying a new car, Jim decides to sell his old car to a friend Mark. Jim accepts a 130 day note for $6,678.54 at 8.5% exact simple interest as payment (both principal and interest will be paid at the end of 130 days). 92 days later, Jim finds that he needs the money and sells the note to a third party for $6,710.00. What annual exact simple interest rate will the third party receive for the investment? (Assume a 365-day year.) (Note: Your answer should be correct to two decimal places to be counted as correct.)

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