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Grace [21]
2 years ago
11

what is the annual interest rate for a 90-day note issued with a face value of $8,000 that will earn interest of $160?

Business
2 answers:
zubka84 [21]2 years ago
8 0
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Readme [11.4K]2 years ago
3 0

The annual interest rate for this note that would earn the interest of $160 is 8%.

In order to solve this problem, we have to use the interest rate formula

InterestRate = P*R *T

<u>where</u>

  • P = Principal
  • R= Rate
  • T = Time

We divide 90 days by the total days in a year

= 90/365

= 0.2466

<u>Principle * time</u>

= 0.2466 * 8000 = 1972.6

The annual interest rate

= 160/1972.6

= 0.081

= 8%

Read more on brainly.com/question/14438429?referrer=searchResults

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