1 an interest rate of 15frac12 was offered to tim on a loan, Ask an Expert

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1. An interest rate of 15½% was offered to Tim on a loan for 6 months, but he was thinking of a comparable discount rate. What would that discount rate be?

2. Bryan received a promissory note for lending $3,000 for 90 days at 13% simple interest. If this note is sold to a bank charging 11% interest, would Bryan make any money, and how much would the bank make?

3. A friend buys merchandise for $3,500 and signs a 120-day non-interest bearing promissory note. Find the proceeds if the vendor sells the note to his bank, which charges 12% interest, and if the merchandise costs the vendor $1,600, how much would he make?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92061982

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