Py +7 = 6y + qp
Solve the equation for y
To solve the equation for y we need to get y alone
Py +7 = 6y + qp
Subtract 6y from both sides
Py - 6y +7 = + qp
Subtract 7 from both sides
Py - 6y = + qp - 7
Now factor out y
(P - 6)y = qp - 7
Divide by P - 6 from both sides
Answer:
The effective interest rate, rounded to the nearest tenth, is 0.1%.
Step-by-step explanation:
The banker's rule is the simple interest formula.
The simple interest formula is given by:
In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly) and t is the time, in years.
The effective interest rate is given by the following formula:
.
In this problem, we have that:
A man makes a simple discount note for $6,200, at an ordinary bank discount rate of 8.84%, for 40 days. We consider that the year has 360 days. This means that .
So
The effective interest rate is
The effective interest rate, rounded to the nearest tenth, is 0.1%.