Question

Sam Peters needs to calculate the effective interest rate of a simple discount note for $3,600, at an ordinary bank discount rate of 10%, for 130 days. Find the effective interest rate rounded to the nearest tenth of a percent. O A. 10.2% OB. 10.4% O C. 10.5% OD. 3%

Answer 1

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WORKING CAPITAL APPROACH - Microsoft Excel (Product Activation Failed) Review File Home Insert Page Layout Formulas Data View Add-Ins %Cut Σ AutoSum - A2 Wrap Text Calibri 11 General E Copy Fill Merge & Center Paste B I U +.0 .00 0 0C Conditional Format Cell Insert Delete Format Sort & Find & % Format Painter Clear Filter Select Formatting as Table Styles Number Clipboard Font Alignment Styles Cells Editing L47 K L М O Q T U V W 34 35 SIMPLE DISCOUNT NOTE 3600 x 10% x 130/360 PRN= 36 INTEREST = 130 37 INTERET IS PAID IN ADVANCE 38 SO NET PROCEEDS = 3470.00 39 3600-130 40 (130/3470) x (360/130) 41 EFFECTIVE ANNUAL RATE HERE WILL BE = 42 ANSWER EFFECTIVE ANNUAL RATE HERE WILL BE = 10.4% B 43 45 46 47 48 49 50 51 52 cash opti WC REQUIRE Sheet2 Z SCORE insu pv fv miller FACTOR Sheet1 eoq SI DISC FOCAL LINE OF CREDIT CARD BANKER ACCEPTANC 130% Rea erences WA 10:52 ENG 15-10-2019