Using the Merchant's Rule,a Debt of $4000 Is Paid Off

question 33

Multiple Choice

Using the Merchant's rule,a debt of $4000 is paid off as follows: $2000 in 50 days and a final payment of $2026.51 in 80 days from today.What simple interest rate,r,was used?

• A)r < 3.0%
• B)3.0% < r < 3.5%
• C)3.5% < r < 4.0%
• D)r > 4.0%

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