# Thread: Need help for math for investment

1. ## Need help for math for investment

- Annie receives USD80,000 from a bank after signing a 130-day note for USD92,000. At what simple discount rate is interest in advance computed?

- Jason receives USD104,000 for discounting a 110-day note 40 days before it matures. Find the rate of the note in simple interest if its value is USD68,000 and the bank discount is USD5,200.

Thanks!

2. ## Re: Need help for math for investment

Originally Posted by herapme123
- Annie receives USD80,000 from a bank after signing a 130-day note for USD92,000. At what simple discount rate is interest in advance computed?
Have you not made any attempt at this yourself? Annie got $80,000 but has to pay back$92,000 so she is paying 92,000- 80,000= $12,000 interest. She has the money for 130 days= 130/360= 0.36 year. - Jason receives USD104,000 for discounting a 110-day note 40 days before it matures. Find the rate of the note in simple interest if its value is USD68,000 and the bank discount is USD5,200. Jason received 104,000- 68,000=$36,000 for, essentially, loaning \$68,000 for 40/365= .11 yr.

Thanks![/QUOTE]