Question: A 90-day note promises to pay Ms. Chiu $2000 plus simple interest at 13%. After 51 days it is sold to a bank that discounts

A 90-day note promises to pay Ms. Chiu $2000 plus simple interest at 13%. After 51 days it is sold to a bank that discounts notes at a 12% simple interest rate. (a) How much money does Ms. Chiu receive? (b) What rate of interest does Ms. Chiu realize on her investment? (c) What rate of interest will the bank realize if the note is paid in full in exactly 90 days?

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