posted by Wanda

I completed a problem where there was a \$7855.00 note at the bank that charges a 14.3 % discount rate. The loan is for 190 days. I found the proceeds to be \$7268.31 and the effective rate charged by the bank to be 15.29 %. How do I determine how much money must be paid back to the bank. Is it the original amount of the note or is there a further formula I should use? Thank you.

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