# math

posted by Anonymous

a man has a simple discount note for \$6,400 at an ordinary bank discount rate of 8.53% for 40 days what is the effective interest rate

1. Henry

I = Po*r*t = 6400*(0.0853/360)*40 = \$60.66.

Effective rate = (60.66/6400) * 100% = 0.95%.

2. charlie

weiners

3. Anonymous

Find rhe effective rate of interest on a 12,000, 120-day, 12% discounted.

4. Anonymous

Find rhe effective rate of interest on a 12,000, 120-day, 12% discounted.

5. Chris

Why do you use 360 and not 365?

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