CASE STUDY $2$

Hernandez decided to borrow $$85,000$ for $10$ months. She found that the bank would lend to her if only she had a cosigner$,$ on that note fortunately her uncle was a successful business owner, and he agreed to cosign$.$ Bank one offered the funds at a $10\%$ simple discount. Find the maturity value of the loan and the discount

Once Hernandez$$s uncle agreed to cosign on a loan, Union Bank offered to lend Hernandez $$85,000$ at $10\mathrm{.}5\%$ simple interest. Find the interest and maturity value.

Find the loan with the lower interest and find the difference in interest.

Find the effective interest rate for both loans to the nearest hundredth of a percent.

Bank Interest Loan Amount Effective Rate

Bank One $$7727\mathrm{.}27$ $$85,000?$

Union Bank $$7437\mathrm{.}50$ $$85,000?$