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

Henry
I = Po*r*t = 6400*(0.0853/360)*40 = $60.66.
Effective rate = (60.66/6400) * 100% = 0.95%. 
charlie
weiners

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

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

Chris
Why do you use 360 and not 365?
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