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Warren borrowed $14,000 on a noninterest-bearing, simple discount, 4

Finance

Warren borrowed $14,000 on a noninterest-bearing, simple discount, 4.5% 60 day note. Assume ordinary interest. What are:

i) The maturity value,

ii) Bank's discount,

iii) Warren's proceeds,

iv) Effective interest rate to the nearest 100th? 

Option 1

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