Patrice's Parachutes had a good year and now wants to purchase a $32,000 airplane. They take...

 

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Patrice's Parachutes had a good year and now wants to purchase a $32,000 airplane. They take out a 30 month loan at 3.64% simple interest from the National Velvet Bank. Eight months later, the National Velvet Bank sells the loan to a different third party bank who requires 3.61% simple interest. How much did the third party bank pay for the note and what was National Velvet's Rate of Return? Patrice's Parachutes had a good year and now wants to purchase a $32,000 airplane. They take out a 30 month loan at 3.64% simple interest from the National Velvet Bank. Eight months later, the National Velvet Bank sells the loan to a different third party bank who requires 3.61% simple interest. How much did the third party bank pay for the note and what was National Velvet's Rate of Return?

Answer rating: 100% (QA)

To find out how much the third party bank paid for the note we first need to calculate the outstandi... View the full answer