Business Mathematics 13th Edition by Gary Clendenen,Stanley Salzman

Exercise 1

APPLE, INC.
www.apple.com
Facts:
• 1976: Founded
• 1984: Introduced Macintosh
• 2001: Introduced iPod
• 2003: Opened iTunes Music Store
• 2007: Introduced iPhone
• 2010: Introduced iPad
After opening her own computer and web-design business, Jessica Hernandez checked into selling Apple's popular iPhones. But she was not able to sell them since Apple allowed only a few large companies to sell them. So, Hernandez focused on computer training classes as she built her reputation designing Web pages for small firms. She knew that she needed to borrow some money as her business grew and wondered how to go about it.
Hernandez decided to borrow $85,000 for 10 months. She found that banks would lend to her only if she had a cosigner on the note-fortunately her uncle was a successful business owner and he agreed to cosign. Bank One offered the funds at a 10% simple discount. Find the maturity value of the loan and the discount. _____________