A man has a simple discount note for $6400, at an ordinary bank discount rate...
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Accounting
A man has a simple discount note for $6400, at an ordinary bank discount rate of 8.53 %, for 60 days. What is the effective interest rate? Round to the nearest tenth of a percent. (Use the banker's rule.)
Periods
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
1
1.00500
1.01000
1.01500
1.02000
1.02500
1.03000
1.03500
1.04000
1.04500
1.05000
1.05500
2
1.01003
1.02010
1.03023
1.04040
1.05063
1.06090
1.07123
1.08160
1.09203
1.10250
1.11303
3
1.01508
1.03030
1.04568
1.06121
1.07689
1.09273
1.10872
1.12486
1.14117
1.15763
1.17424
4
1.02015
1.04060
1.06136
1.08243
1.10381
1.12551
1.14752
1.16986
1.19252
1.21551
1.23882
5
1.02525
1.05101
1.07728
1.10408
1.13141
1.15927
1.18769
1.21665
1.24618
1.27628
1.30696
6
1.03038
1.06152
1.09344
1.12616
1.15969
1.19405
1.22926
1.26532
1.30226
1.34010
1.37884
7
1.03553
1.07214
1.10984
1.14869
1.18869
1.22987
1.27228
1.31593
1.36086
1.40710
1.45468
8
1.04071
1.08286
1.12649
1.17166
1.21840
1.26677
1.31681
1.36857
1.42210
1.47746
1.53469
9
1.04591
1.09369
1.14339
1.19509
1.24886
1.30477
1.36290
1.42331
1.48610
1.55133
1.61909
10
1.05114
1.10462
1.16054
1.21899
1.28008
1.34392
1.41060
1.48024
1.55297
1.62889
1.70814
11
1.05640
1.11567
1.17795
1.24337
1.31209
1.38423
1.45997
1.53945
1.62285
1.71034
1.80209
12
1.06168
1.12683
1.19562
1.26824
1.34489
1.42576
1.51107
1.60103
1.69588
1.79586
1.90121
13
1.06699
1.13809
1.21355
1.29361
1.37851
1.46853
1.56396
1.66507
1.77220
1.88565
2.00577
14
1.07232
1.14947
1.23176
1.31948
1.41297
1.51259
1.61869
1.73168
1.85194
1.97993
2.11609
15
1.07768
1.16097
1.25023
1.34587
1.44830
1.55797
1.67535
1.80094
1.93528
2.07893
2.23248
Periods
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
4.00%
4.50%
5.00%
5.50%
16
1.08307
1.17258
1.26899
1.37279
1.48451
1.60471
1.73399
1.87298
2.02237
2.18287
2.35526
17
1.08849
1.18430
1.28802
1.40024
1.52162
1.65285
1.79468
1.94790
2.11338
2.29202
2.48480
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