What simple interest rate did the original owner

Assignment Help Macroeconomics
Reference no: EM131077173

A 180-day promissory note for $2000 bears 7% simple interest. After 60 days it is sold to a bank that charges a simple discount rate of 7%.

a) Calculate the price paid by the bank for the note. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

b) What simple interest rate did the original owner of the note actually earn? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

c) If the note is actually paid on the due date, what simple discount rate will the bank have realized? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Reference no: EM131077173

Questions Cloud

Differences between predicted and actual water heights : 1. Using your graphs determine if the Gulf Coast or the Atlantic Coast  are diurnal semidiurnal, or mixed tides. 2. Based on the data collected, can you predict at what time the next high and low tide will occur for each location? 3. What was the pre..
What is the additional investment in net working capital : A project for Jevon and Aaron, Inc. results in additional accounts receivable of $400,000, additional inventory of $180,000, and additional accounts payable of $70,000. What is the additional investment in net working capital?
What was the cost to you in time trouble and stress : Have you or someone you know, experienced computer problems caused by virus? What did the virus do? Where do you think you got it from? How did you fix the problem? What was the cost to you in time, trouble, and stress?
Marginal social cost of engaging : Alexander is willing to pay for such research. Vanessa's marginal private benefit from such research is given by the equation P= 100 -Q.The marginal social cost of engaging in such research is constant at $100. Reference: Ref 17-15
What simple interest rate did the original owner : a) Calculate the price paid by the bank for the note. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b) What simple interest rate did the original owner of the note actually earn? (Do not round intermediate calcu..
Analyze the key elements of the case : Go to the Federal Trade Commission Website located at http://www.ftc.gov/. Search for Deceptive Advertising. At Results, scroll down to Filter by Content Type and choose Case. Then Filter by Date and select this year or last year. Select a recent ..
What is paid media : 1. What is paid media? 2. What is owned media? 3. What is earned media?
Difference between a federal income tax : How could utility theory help us understand the difference between a federal income tax and a federal sales tax on consumer consumption patterns?
List the vertices in the order in which each traversal visit : Use both the depth-first strategy and the breadth-first strategy to traverse the graph in Figure 20-33 , beginning with vertex 0, and the graph in Figure 20-36, beginning with vertex a. List the vertices in the order in which each traversal visits..

Reviews

Write a Review

Macroeconomics Questions & Answers

  What is the real interest rate

When there is deflation, as in inflation of -1%, the real interest rate that Herb pays (as compared to what he expected to pay): increases, so Herb feels poorer decreases, so Herb feels richer increases, so Herb feels richer decreases, so Herb fee..

  Discuss week objectives with team

Discuss this week's objectives with your team. Include the topics you feel comfortable with, any topics you struggled with, and how the topics relate to your field.

  Discusse the impact that trade restrictions such as tariffs

Discusse the impact that trade restrictions such as tariffs and quota have on the price of imports.

  Economists who work for thegovernment are often called upon

Economists who work for thegovernment are often called upon to make policyrecommendations. Why do you think it is important for thepublic to be able to differentiate normative statements frompositive statements in these recommendations?

  Assume a perfectly competitive firm is currently producing

assume a perfectly competitive firm is currently producing 5000 units of output and is earning 15000 in total revenue.

  1 consider a macroeconomy was initially at equilibrium

1. consider a macroeconomy was initially at equilibrium level.nbsp using the short run aggregate demand and aggregate

  What are the different types of unemployment

How do they affect the economy in terms of growth, labor force, and price of labor

  International trade and economic growth

Submit a 4- to 5-page paper that addresses the following questions. Be sure to use references within the paper to support your answers. Show work for all calculations.

  What is the income gap for the bank

What is the income gap for the bank? What will happen to profits next year if interest rates fall by 3 percentage points?

  Determine what is the value of the product sold

Use the red line (cross symbol) to draw the valuation, V, across the market. Use the orange line (square symbol) to draw the full price line for those who purchase from firm 1, i.e., the line showing the price paid by a consumer plus transport cos..

  What are the pros and cons of unionizing a workforce

The labor market is traditionally protected by union in many industries such as automobile and K-12 education (public schools) What are the pros and cons of unionizing a workforce What about minimum wage rate What are the pros and cons

  Suppose the return and cost of entrepreneurship curves

Suppose the return and cost of entrepreneurship curves are described by the following equations(with numbers measured in the thousands):R=800-50 N,C=100+150 N, where R=returns to entrepreneurship,C =cost of entrepreneurship, and N=number of entrepren..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd