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    Contemporary Mathematics
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    Exam 10: Simple Interest and Promissory Notes
  5. Question
    What Is the Effective Interest Rate of a Simple Discount
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What Is the Effective Interest Rate of a Simple Discount

Question 102

Question 102

Multiple Choice

What is the effective interest rate of a simple discount note for $7,000 at a bank discount rate of 6%, for 3 months? (Round to the nearest tenth percent)


A) 6.1%
B) 5.8%
C) 6.5%
D) 7.2%

Correct Answer:

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