Answer-1:
(a) Interest = $7,540 * 0.082 * 270/360 = $463.71
Proceed = $7,540 - 463.71 = $7,076.29
(b) Effective interest rate = 463.71 / (7,076.29 X 270/360) = 8.73%
Bill Blank signed an $7,540 note at Citizen's Bank. Citizen's charges a 8.2% discount rate. Assume...
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