For services rendered, an attorney accepts a 90-day note for $5,000 at 7% simple interest from a client. (Both interest and principal are repaid at the end of 90 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $5,060 after 60 days. What annual interest rate will the third party receive for the investment? The third party will receive an annual interest rate of %. (Type an integer or decimal rounded to two decimal places as needed.)
For services rendered, an attorney accepts a 90-day note for $5,000 at 7% simple interest from a client. (Both interest and principal are repaid at the end of 90 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $5,060 after 60 days. What annual interest rate will the third party receive for the investment? The third party will receive an annual interest rate of %. (Type an integer or decimal rounded to two decimal places as needed.)
Chapter19: Lease And Intermediate-term Financing
Section: Chapter Questions
Problem 19P
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