Answered: What is the effective interest rate of…

What is the effective interest rate of a simple discount note for $34,500, at an ordinary bank discount rate of 14%, for 30 days? Assume that there are 360 days in a year.

Advanced Engineering Mathematics

10th Edition

ISBN:9780470458365

Author:Erwin Kreyszig

Publisher:Erwin Kreyszig

Chapter2: Second-order Linear Odes

Section: Chapter Questions

Problem 1RQ

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Question

What is the effective interest rate of a simple discount note for

$34,500,

at an ordinary bank discount rate of

14%,

for

days? Assume that there are 360 days in a year.

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