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5 July, 09:09

The bank discount of an $18,000 non-interest-bearing, simple discount, 8% 90-day note is

A. $630.

B. $360.

C. $17,640.

D. $18,360.

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  1. 5 July, 09:29
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    Use the formula for simple interest.

    I = Prt

    Substitute the given values for the corresponding variables. Time is the fraction of a year that is considered to have 360 days.

    I = $18,000*0.08 * (90/360) = $360
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