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Travka [436]
3 years ago
9

The bank discount of an $18,000 non interest bearing, simple discount, 8% 90 day note is?

Mathematics
1 answer:
Anna11 [10]3 years ago
8 0

Answer- Amount of discount the bank will be proving is = $360

Solution-

We know the formula for simple interest, i = Prt

Where i = interest, P = capital, r = rate of interest, t = time period

Substituting the given values,

(Time is the fraction of a year that is considered to have 360 days)

i = \frac{(18,0000)(08)(90)}{360} = 360

⇒ i = $360


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