# Thread: Discounts and Simple Interest Rates.

1. ## Discounts and Simple Interest Rates.

Is this question complete??

A cash discount is given if a bill is 40 days in advance of its due date. If the bill is for $5,000.00, a. What is the highest SI rate at which you can afford to borrow money if you want to take advantage of this discount? b. If you can borrow money at a 20% SI rate, how much money can you save by paying the bill for$5,000 forty days in advance?

I am thinking here that this question is missing the amount of the discount in order to be calculated. Am I right?? If not, how do I go about this?? I am totally lost...

2. Originally Posted by Ife
Is this question complete??
A cash discount is given if a bill is 40 days in advance of its due date. If the bill is for $5,000.00, Not complete: how much is the discount? 3. well that's all the question gives.. can we take it to be 'x'?? if so, how do we calculate? 4. NOTHING can be done without the discount amount or percentage. Check with your teacher. 5. ok so if the savings were like a figure of$100, what would be the calculation from there??

6. Originally Posted by Ife
ok so if the savings were like a figure of \$100, what would be the calculation from there??
i/365 * 40 * 5000 = 100 ; i will be the annual rate