Mike Kornas signed a 12-month, 11% p.a. simple interest promissory note for $12 000 with MacDonalds Furniture.

Question:

Mike Kornas signed a 12-month, 11% p.a. simple interest promissory note for $12 000 with MacDonald’s Furniture. After 100 days, MacDonald’s Furniture sold the note to the Royal Bank at a rate of 13% p.a. Royal Bank resold the note to Friendly Finance Company 25 days later at a rate of 9% p.a. Find the gain or loss on this note for each company and bank involved.