Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 11

Solve the following application problems. Round rates to the nearest tenth of a percent, time to the nearest day, and money to the nearest cent.
James and Tiffany Paterson need a 220-day loan for $68,000 to open Adventure Sports Unlimited. Bank One agrees to a simple interest note with a loan amount of $68,000 at
% interest. Union Bank agrees to a simple discount note with proceeds of $68,000 and a 9.5% simple discount rate. Find (a) the interest for the simple interest note, _____________ (b) the maturity value of the discount note, _____________ (c) the interest for the discount note, _____________ and (d) the savings in interest charges of the simple interest note over the discount note. _____________