Engineering Board Exam Reviewer · Discount · hard
A simple discount rate of 12% is applied to a note due in 9 months. Find the equivalent simple interest rate per year.
- 12%
- 13.19%
- 11.01%
- 16%
Answer
B. 13.19%
Solution
i=d/1-dt=0.12/1-0.12(0.75)=0.12/0.91=13.19%.
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