11. A man makes a simple discount note with a face value of $2300, a term of 160 days, and a 18% discount rate. Find the discount. (Use the banker's rule)
12. A man has a simple discount note for $6600, at an ordinary bank discount rate of 8.72%, for 40 days. What is the effective interest rate? Round to the nearest 10th of a percent. (Use banker's rule)
13. A man holds a note of $5000 that has an interest rate of 13% annually. The note was made on March 16 and is due November 14. He sells the note to a bank on June 12 at a discount rate of 12% annually. Find the proceeds on the third-party discount note. (Use the bankers rule)
16. Tom Bond borrowed $6200 at 5 ½% for three years compounded annually. What is the compound amount of the loan and how much interest will he pay on the loan?
22. Compute the amount of money to be set aside today to ensure a future value of $4300 in one year if the interest rate is 8.5% annually, compounded annually.
23. Ronnie Cox has just inherited $27,000. How much of this money should be set aside today to have $17,000 to pay cash for a Ventura Van, which he plans to purchase in one year? He can invest at 1.7% annually, compounded annually.
A guide for various finance problems