You were offered the opportunity to purchase either a simple interest note or a simple discount...

You were offered the opportunity to purchase either a simple interest note or a simple discount note with the following terms: $37,172 at 10% for 6 months.

a. Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest tenth percent.)

Effective interest rate %

b. Based on the effective interest rate, which would you choose?

	simple interest note
	simple discount note

Expert Solution

jeff jeffy answered 1 year ago

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You were offered the opportunity to purchase either a simple interest note or a simple discount...

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