Kowalski’s Drug Store signed a 15-month simple discount note with a face value of $12,300. Find the proceeds if the discount rat
e is 12%. $9,840 $12,115.50 $10,455 $1,845
Find the effective rate of interest (APR) for a loan with a loan amount of $17,300, a time of 180 days, and interest of $1,297.50.
11.5% 20% 3.2% 15%
Discount is the loan amount. True False I need help, its due today. I can't get them wrong and thank you will mark brainliest
A. Using the Simple Discount Note formula: Proceeds = Maturity Value (MV) - Discount; MV = Face Value Discount = MdT; M = Maturity; d = discount; T = Time = $12,300*12%*15/12 Discount = $1,845 Proceeds = MV - Discount = $12,300 - $1,845 Proceeds = $10,455
B. Using the Simple Interest Note formula: Effective Rate of Interest = Interest / Proceeds*Time = $1,297.50 / $17,300*180/360 = .15 Effective Rate of Interest = .15 or 15%
C. False. Discount is the interest charged to the principal of the loan.
By rounding to the nearest one it means round to the nearest whole number. So basically, the number 0.7414 rounded to the nearest whole number would be 1.
