The bank discount of an $18,000 non-interest-bearing, simple discount, 8% 90-day note is

A. $630.

B. $360.

C. $17,640.

D. $18,360.

Question

Mathematics

Salas

28 August, 21:45

The bank discount of an $18,000 non-interest-bearing, simple discount, 8% 90-day note is

A. $630.

B. $360.

C. $17,640.

D. $18,360.

+4

Answers (1)

Know the Answer?

Yair Rocha · Answer 1

Use the formula for simple interest.

I = Prt

Substitute the given values for the corresponding variables. Time is the fraction of a year that is considered to have 360 days.

I = $18,000*0.08 * (90/360) = $360

The bank discount of an $18,000 non-interest-bearing, simple discount, 8% 90-day note isA. $630.B. $360.C. $17,640.D. $18,360.

The bank discount of an $18,000 non-interest-bearing, simple discount, 8% 90-day note is

A. $630.

B. $360.

C. $17,640.

D. $18,360.