Posted by
**Melissa** on
.

Homer won a prize in the lottery of $1000, payable $500 immediately and $500 plus 4% simple interest payable in 250 days. Getting impatient, Homer sells the promissory note to Moe for $450 cash after 130 days. Using a nominal 360 day year, find the simple interest rate, rounded to .01, earned by Moe.