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March 16th, 2014, 03:42 AM  #1 
Newbie Joined: Feb 2013 Posts: 5 Thanks: 1  Calculating Simple Interest Rate Per Annum
Question: Seventy days after the issue date, the original owner sold the note to Tiffany for $97,651.13. Calculate the rate of simple interest p.a. used by Tiffany in calculating her purchase price. (The answer should be expressed as a percentage correct to 2 decimal places.) help anyone 
March 16th, 2014, 01:06 PM  #2 
Global Moderator Joined: May 2007 Posts: 6,759 Thanks: 696  Re: Calculating Simple Interest Rate Per Annum
You need to tell us the face value of the note.

March 16th, 2014, 09:19 PM  #3 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,415 Thanks: 1025  Re: Calculating Simple Interest Rate Per Annum
I see you got no answer here either: http://ph.answers.yahoo.com/question/in ... 006AAcACO9 As Mathman said, more info required. 
March 20th, 2014, 03:40 AM  #4 
Newbie Joined: Feb 2013 Posts: 5 Thanks: 1  Re: Calculating Simple Interest Rate Per Annum
Full Information: A 180?days promissory note (this is similar to a bank bill) will mature for $100,000 plus simple i nterest at 7%p.a. Calculate the maturity value of the note. (Correct the answe r to 2 decimal places.) Seventy days after the issue date, the original ow ner sold the note to Tiffany for $97,651.13. Calcu late the rate of simple interest p.a. used by Tiffany in calculating her p urchase price. (The answer should be expressed as a percentage correct to 2 decimal places.) 
March 20th, 2014, 08:57 AM  #5 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,415 Thanks: 1025  Re: Calculating Simple Interest Rate Per Annum
Why did you not post in full to start with? Hint: Tiffany is investing $97,651.13 today and will collect $103,500 in 110 days. The $3,500 interest on the note assumes a 360day year. 
March 20th, 2014, 08:04 PM  #6 
Newbie Joined: Feb 2013 Posts: 5 Thanks: 1  Re: Calculating Simple Interest Rate Per Annum
is the Answer 5.33%? Formula is r=((S/P)1)/T Where S future Value>97651.13 P is current value>96663.14 T is Time>70/365 so r=0.0533. Another way, if i am assuming 180 day period, getting the same answer T=70/180 r=((97651.13/96663.14)1)/(70/180) r=0.026 Now multiplying =r*(365/180) =(0.026)*(365/180) =0.0527 =0.053=5.3% 
March 20th, 2014, 09:14 PM  #7 
Math Team Joined: Oct 2011 From: Ottawa Ontario, Canada Posts: 14,415 Thanks: 1025  Re: Calculating Simple Interest Rate Per Annum
I can't tell what you're doing; why present and futire values? She will collect 103,500 after 110 days (18070), so earning interest of 5,849 (103,50097,651) over 110 days. Find the equivalent interest over 360 (or 365) days, then calculate the rate required to achieve that. 

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