posted by Nieda
4) Jim has been offered a substantial cash discount if he pays an invoice 60 days earlier. One bank will loan him the needed money at 11% simple interest rate. A second bank will also loan him the money, but at bank discount rate. What is the maximum discount rate that Jim can accept at the second bank, so that he does not pay more interest than at the first bank ?
What is the 2nd bank's discount rate?