Carrie borrows $525 from Sue on February 14, 2019 for 13 months at 8.5% simple interest....

 

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Carrie borrows $525 from Sue on February 14, 2019 for 13 months at 8.5% simple interest. Then, 5 months before maturity, Sue sells the note to B. Harmless who discounts it based on a bank discount rate of 13.5%. a. How much.did..B. Harmless pay Sue for the note? b. What simple interest rate did Sue actually earn on the $525 that she lent to Carrie for the time that she held the note? % Ale Carrie borrows $525 from Sue on February 14, 2019 for 13 months at 8.5% simple interest. Then, 5 months before maturity, Sue sells the note to B. Harmless who discounts it based on a bank discount rate of 13.5%. a. How much.did..B. Harmless pay Sue for the note? b. What simple interest rate did Sue actually earn on the $525 that she lent to Carrie for the time that she held the note? % Ale

Answer rating: 100% (QA)

a To find out how much B Harmless paid Sue for the note we need to calculate the maturity value of t... View the full answer