Contemporary Mathematics for Business and Consumers 7th Edition by Robert Brechner ,George Bergeman

Exercise 60

You are the accounting manager for Kool Ragz, Inc., a manufacturer of men's and women's clothing. The company needs to borrow $1,800,000 for 90 days in order to purchase a large quantity of material at "closeout" prices. The interest rate for such loans at your bank, Rimrock Bank, is 11% using ordinary interest.
a. What is the amount of interest on this loan?
b. After making a few "shopping" calls, you find that Southside National Bank will lend at 11% using exact interest. What is the amount of interest on this offer?
c. So that you can keep your business, Rimrock Bank has offered a loan at 10.5% using ordinary interest. What is the amount of interest on this offer?
d. (Challenge) If Southside National wants to beat Rimrock's last offer (part c) by charging $1,250 less interest, what rate, rounded to the nearest hundredths of a percent, must it quote using exact interest?