Contemporary Mathematics for Business & Consumers 8th Edition by Robert Brechner,Geroge Bergeman

Exercise 50

You are the accounting manager for koolRagz, Inc. a manufacturer of men's and women's clothing. The company needs to borrow $1,800,000 for 90 days in order to purchase a large quantity of material at "closeout" prices. The interest rate for such loans at your bank. Rimrock Bank, is 11% using ordinary interest
a. What is the amount of interest on this loan
b. After making a few "shopping" calls, you find that Southside National Bank will lend at 11% using exact interest. What is the amount of interest on this offer
c. So that you can keep your business. Rimrock Bank has offered a loan at 10.5 % using ordinary interest. What is the amount of interest on this offer
d. (Challenge) If Southside National wants to beat Rimrock's last offer (part c) by charging SI,250 less interest, what rate, rounded to the nearest hundredths of a percent, must it quote using exact interest