Solve the problem.
-The Gibralter Company loaned $7,843 for 60 days to the Hazen Company for the purchase of business supplies. The Gibralter Company sold the 7% simple interest note 44 days later at an 9%
Discount rate. Find the discount period and the discount.
A)Discount period: 16 days
Discount: $31.74
B)Discount period: 16 days
Discount: $31.30
C)Discount period: 104 days
Discount: $206.30
D)Discount period: 16 days
Discount: $31.01

Question

Quizplus · Accepted Answer

Discount period: 16 days (60 days - 44 days). Discount: $31.74, calculated using the formula for simple interest discount at a 9% annual rate for the 16-day period.

Solve the Problem. -The Gibralter Company Loaned $7,843 for 60 Days to the Days