Compute (A)bank Discount, (B)proceeds for the Following Simple Discount (Use

question 60

Short Answer

Compute (A)bank discount, (B)proceeds for the following simple discount (use ordinary interest), and (C)the effective interest rate to nearest hundredth percent.
Face Value = $12,000, Discount Rate = 10%, Time = 125 days

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Definitions:

Charitable

relating to or involving the giving of money, goods, or help to those in need without expecting anything in return.

Subsidized

Financial support provided, often by the government, to help reduce the cost of a service or commodity to the end user.

Economic Development

Activities aimed at improving the economic well-being and quality of life for a community, by creating and retaining jobs and supporting or growing incomes.

Operational

Pertains to the normal, day-to-day activities required for an organization or project to function effectively and efficiently.