A man has a simple discount note for $6,100, at an ordinary bank discount rate of 8.61%, for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent. (Use the banke rule.) The effective interest rate is % (Round to the nearest tenth of a percent as needed.)

A man has a simple discount note for $6,100, at an ordinary bank discount rate of 8.61%, for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent. (Use the banke rule.) The effective interest rate is % (Round to the nearest tenth of a percent as needed.)

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter19: The Basic Tools Of Finance

Section: Chapter Questions

Problem 1CQQ

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Question

A man has a simple discount note for $6,100, at an ordinary bank discount rate of 8.61%, for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent. (Use the banker's
rule)
The effective interest rate is %.
(Round to the nearest tenth of a percent as needed.)

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