Question

Find the annual simple discount rate equivalent to an annual simple interest rate of 4.5% over a term of 7 years.

Round your answer to the nearest tenth of a percent.

Answer 1

Given Discocentrale (dr) = 4.50 =0.045 time (+) = 7 principle = P {Assames Here, Locan discount = Pxdoxt - PXO 045 87 Now, Net Amocent = P - loan discount = P-(PX 7X0.045) = (1-0.315) P = 0.685P simple interest (r) loan discount -x100 v Net amount ytime = P x 0. 045 8 7 x 100 0.6858PX7 0.0668100 = [6.6%] a simple rate (2) = 6.6 4.