User Account

All Pages

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 level of excess reserves does the bank have

Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve ratio is 20 percent. Households deposit $15,000 in currency into the bank and that currency is added to reserves.

  The night before an economic exam you decide to go to the

the night before an economic exam you decide to go to the movies instead of staying home and working your myeconlab

  Phillips curve is a relation between the change in the

phillips curve is a relation between the change in the inflation rate and the level of the unemployment rate.does that

  Mixing of powder-pastes and batters

The Mixing of dry powders is normally carried out as a batch process in either vertical or horizontal mixers. Vertical mixers have a movable bowl in which the contents are mixed by mechanical agitation. Paddle agitators are commonly used and the s..

  Top 20 most admired companies

4. In 2008, citing Goldman as one of the "Top 20 Most Admired Companies" in the United States, Fortune magazine characterized the ?rm's culture as "an impossi-ble-to-replicate mix of extreme aggression, deep paranoia, individual ambition, an..

  Macroeconomic environment discussing the effectiveness

The macroeconomic environment discussing the effectiveness of the monetary stragies in the US.

  Compute the present worth for the actual dollar cashflow

There is an investment opportunity that you would like to analyze. The opportunity requires that you pay $20,000 today, and in return, the investment would send you a check for $6000 at the end of the first year, $8000 at the end of the second yea..

  Compute the annual growth rate of dividends

Compute the growth rate of the dividend, g. (You can either compute the ROE*plowback ratio or compute the annual growth rate of dividends) e) Based on this information, what should the price of the stock be today using the constant-growth dividend ..

  Process of creation of money

Assume Bank A, which faces a reserve requirement of 10%, receives a $1000 deposit from a consumer.

  Question regarding the costs of production

A small firm in the agricultural industry, Joseph Farms, Inc., has researched limited data for their firm.  They are asking you to help them complete the information below so they will be able to make decisions based on the data.

  What were main benefits fromt activities of goldsmith banker

An early goldsmith banker earned a profit (sometimes a large profit) simply by writing notes to certify that a person had deposited a certain amoumt of gold in his vault. By writing more notes than the amount of gold held

  Determining the united states postal service

"Have other macroeconomic events impacted the economy and the United States Postal Service? Please explain."

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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