The face value of both a simple interest and a simple discount note are $6,000. If...

Question

Question

The face value of both a simple interest and a simple discount note are $6,000. If both notes have interest rates of 8% for 90 days, calculate:

a. Amount of interest charged for each type of note.

b. Amount each borrower would receive.

c. Amount payee would receive at maturity.

Answer 1

Answer #1

a) The interest charged each note, I= Port - $6000x 0.08x 90 360 TI=$120) b) $6000 simple interest sute; $ 5880 simple discou

Answer 2

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