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Business Math : Simple Interest

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On July 1, B.Good borrowed $2000 from G. Whiz and agreed to pay the debt plus 8% simple interest in 270 days. Thirty days after borrowing the money, B. Good settled the debt by having it discounted at a simple interest rate of 7%. How much did G. Whiz recieve?

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Solution Summary

A simple interest problem involving a discounted rate is solved.

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270 days = 270/360= 0.75 year
(usually we count one month by 30 days in ...

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