Mark Price, the owner of Biggie's Restaurant, took a simple discount note for two years from PNC Bank for renovations. His loan was for $10,000 at a 6% discount rate. Calculate (A)bank discount, (B)proceeds, (C)effective rate to the nearest tenth.

Question

Quizplus · Accepted Answer

A. 10,000 × .06 × 2 = $1,200; B. 10,000 - 1,200 = $8,800; C. 1,200 / (8,800 × 2)= .06818 = 6.8%.

Mark Price, the Owner of Biggie's Restaurant, Took a Simple