Question

What is the effective interest rate of a simple discount note for $31,700, at an ordinary bank discount rate of 10%, for 30 days? Assume that there are 360 days in a year The effective interest rate is % (Round to the nearest tenth as needed)

          What is the effective interest rate of a simple discount note for $31,700, at an ordinary bank discount rate of 10%, for 30 days? Assume that there are 360 days in a year
The effective interest rate is % (Round to the nearest tenth as needed)

What is the effective interest rate of a simple discount note for 31,700, at an ordinary bank discount rate of 10%, for 30 days? Assume that there are 360 days in a year
The effective interest rate is % (Round to the nearest tenth as needed)

Added by Destiny B.

Elementary and Intermediate Algebra

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

Instant Answer

Solved by Expert Oluwadamilola Ameobi

08/31/2023

Step 1

The discount amount can be calculated using the formula: Discount = Principal * Rate * Time In this case, the principal is $31,700, the rate is 10%, and the time is 30 days. Discount = $31,700 * 0.10 * (30/360) Discount = $31,700 * 0.10 * 0.0833 Discount = Show more…

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What is the effective interest rate of a simple discount note for $31,700, at an ordinary bank discount rate of 10% for 30 days? Assume that there are 360 days in a year. The effective interest rate is [%] (Round to the nearest tenth if needed)