Register
What is the effective rate of a $25,000 interest-bearing simple discount 10%, 90-day note?
10.9k views
3 votes
What is the effective rate of a $25,000 interest-bearing simple discount 10%, 90-day note?

User Jlam
by
5.9k points

1 Answer

4 votes
The effective interest rate on a discounted note is
.. 1/(1-r) = 1/0.9 ≈ 11.11%

_____
The amount and time have nothing to do with it for simple interest.
User Josh Knauer
by
6.0k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.5m questions

8.6m answers

Other Questions

One reason that businesses want to combine with other businesses is to A. avoid taxes. B. delay expenses. C. hire more workers. D. reduce expenses.
Which of the following possesses the sole power to create revenue bills?
A ______ is "the basic interpretive mechanism to let people know what an organization is doing and are sent out to editors and reporters in hopes of stimulating favorable stories about their organizations"
All of the following are fees typically charged by credit card companies EXCEPT: A. Late payment fee B. Balance Transfer fee C. Annual membership fee D. Reload fee
Individuals are free to produce and sell whatever products they wish
Link Copied!