Axel has a promissory note for $1750 dated March 15, 2013. The note is due in 360 days with interest at 6.5%. If Axel sells the note to a bank on December 19, 2013 for $1819.17, what rate of interest will he realize on his investment?

Axel has a promissory note for $1750 dated March 15, 2013. The note is due in 360 days with interest at 6.5%. If Axel sells the note to a bank on December 19, 2013 for $1819.17, what rate of interest will he realize on his investment?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

10. Axel has a promissory note for $1750 dated March 15, 2013. The note is due in 360 days with interest at 6.5%. If Axel sells the note to a bank on December 19, 2013 for $1819.17, what rate of interest will he realize on his investment?

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