7. a man makes a simple discount note for $6,200, at an ordinary bank discount rate of 8.84%, for 40 days. what is the effective interest rate? round to the nearest tenth of a percent. (use the bankerâs rule.)

The effective interest rate, rounded to the nearest tenth, is 0.1%.

Step-by-step explanation:

The banker's rule is the simple interest formula.

The simple interest formula is given by:

In which E are the earnings, P is the principal(the initial amount of money), I is the interest rate(yearly) and t is the time, in years.

The effective interest rate is given by the following formula:

.

In this problem, we have that:

A man makes a simple discount note for $6,200, at an ordinary bank discount rate of 8.84%, for 40 days. We consider that the year has 360 days. This means that .

So

The effective interest rate is

The effective interest rate, rounded to the nearest tenth, is 0.1%.

10 miles

step-by-step explanation: