On some personal loans, Buckhorn County Bank & Trust uses the discount method of calculating finance charges. For the two loans below, calculate the discount amount that Buckhorn Bank is charging and the proceeds that go to the borrower. Then calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 360-day year and compute actual rates to the nearest 1/100 of a percent.

Question

On some personal loans, Buckhorn County Bank & Trust uses the discount method of calculating finance charges. For the two loans below, calculate the discount amount that Buckhorn Bank is charging and the proceeds that go to the borrower. Then calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 360-day year and compute actual rates to the nearest 1/100 of a percent.
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The Answer of On some personal loans, Buckhorn County Bank & Trust uses the discount method of calculating finance charges. For the two loans below, calculate the discount amount that Buckhorn Bank is charging and the proceeds that go to the borrower. Then calculate the actual interest rate which is based on the proceeds rather than the face value. Use a 360-day year and compute actual rates to the nearest 1/100 of a percent.
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On Some Personal Loans, Buckhorn County Bank & Trust Uses