Final answer:
The effective interest rate cannot be calculated without the specific stated rate for the note. For the $5,000 loan at a 6% simple interest rate over three years, the total interest is $900. For the $10,000 loan that earned $500 over five years, the interest rate charged was 1%.
Step-by-step explanation:
The question provided appears to be incomplete as it does not state the specific stated rate for the 3-month, noninterest-bearing note. To properly calculate the effective interest rate, we would need the stated rate or the discount rate used. However, for the other examples provided, we can calculate the total amount of interest and the interest rate charged.
For question 6, to find the total amount of simple interest from a $5,000 loan for three years at a rate of 6%, we use the simple interest formula:
Interest = Principal × Rate × Time. This would result in:
Interest = $5,000 × 6% × 3 = $5,000 × 0.06 × 3 = $900.
For question 7, to determine the interest rate charged for receiving $500 in interest on a $10,000 loan over five years, rearrange the simple interest formula and solve for the rate:
Rate = Interest / (Principal × Time) = $500 / ($10,000 × 5) = $500 / $50,000 = 0.01 or 1%.