Michael Denton has a simple discount note for $2,000, at an ordinary bank discount rate of 12 , for 240 days What is the effective interest rate Round to the nearest tenth of a percent ...

Find the bank discount I PRT I 2000012 240 360 I 160 Proceeds pri ...

Michael Denton has a simple discount note for $2,000, at an ordinary bank discount rate of 12%,

Question:

Michael Denton has a simple discount note for $2,000, at an ordinary bank of 12%, for 240 days. What is the effective interest rate? Round to the nearest tenth of a percent.
Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...