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Algebra: Simple Interest

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1) A man has a simple discount note for $6,300 at an ordinary bank discount rate of 8.72%, for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent. Use the bankers rule.

2) Find the discount and proceeds on a 3,240 face value note for six months if the discount rate is 9.3%. Round to the nearest cent if needed. Use the bankers rule.

3) A man makes a simple discount note with a face value of $2,600, a term of 160 days, and an 18% discount rate. find the discount. Round to the nearest dollar as needed. Use the bankers rule.

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Solution Summary

Finding simple interest and discount rates are examined.

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For all these 3 problems we will use the formula:

I = Prt

Where,
I = interest
P = principal
r = interest rate (per year)
t = time (in years or fraction of a year)

Banker's rule means 1 year = 360 days.

1) A man ...

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