A 90-day promissory note with face value $5000,has a maturity value of $5127.40.After 30-days,it is sold to a bank that charges a simple discount rate of d = 10%.What rate of simple interest did the original owner of the note earn?
A)9.47%
B)9.83%
C)10.49%
D)10.82%

Question

Quizplus · Accepted Answer

The original owner earned a simple interest rate of 9.47%. This is calculated by finding the interest earned over the 90 days and then annualizing it to find the simple interest rate.

A 90-Day Promissory Note with Face Value $5000,has a Maturity