document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1194407>Question 1194407</A>: <I><SPAN STYLE=\"word-break: break-all;\"> The simple discount rate of a bank is 16% per annum. If a client signs a note to pay R6000 in nine months time:<BR>\n" );
document.write( "1.1. How much will the client receive?<BR>\n" );
document.write( "1.2. What is the equivalent simple interest of this loan? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #826605 by </B><A HREF=/tutors/aboutme.mpl?userid=Theo><B>Theo(13342)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=Theo><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=Theo><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=826605\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> simple interest formula is i = p * r * t<BR>\n" );
document.write( "i is the interest, p is the principal, r is the interest rate per time period, t is the number of time periods.<BR>\n" );
document.write( "6000 payable in 9 months at 16% per year make the formula:<BR>\n" );
document.write( "i = 6000 * .16 * 9/12 = 720.<BR>\n" );
document.write( "the client will receive 6000 minus 720 = 5280.<BR>\n" );
document.write( "the equivalent simple interest of the loan is 720 / 5280 = .1363636364.<BR>\n" );
document.write( "that's 13.64% rounded to two decimal places after converting the rate to percent.<BR>\n" );
document.write( "the rate * 100 = percent.\r<BR>\n" );
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