Homework Answers
Amount of discount = 2500 * 0.03 = 75
Amount payable = 2500 - 75 = 2425.
Thus rate of Interest earned for 90 days if cash payment is made = 75 / 2425 * 100 = 3.092784 %
Annual rate = 3.092784 * 360 / 90 = 12.371 %
Add Answer to:
the answer is 12.371%
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