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27 December, 15:14

Justin discounts a 115-day note for $26,000 at 8.5%. the effective rate of interest to the nearest tenth percent is:

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  1. 27 December, 16:05
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    8.7%

    $26,000 x. 085 x 115/360 = $705.97

    $26,000 - $705.97 = $25,294.03

    $25,294.03 x 115/360 = $8080.04

    $705.97/$8080.04 = 8.7%
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