Question Number 1 (one).
Naiela received a 125-days promissory note for $20,202 which is matured on 7th august 2014 with a simple interest rate of 5.8% per annum. She later discounted the note 66 days before the maturity date and obtained $20,176.48. Find;
(a) the date of the note
(b) the maturity value
(c) the bank discount
(d) the bank discount rate
Question Number 2 (two).
Malim bought a computer listed at $9,808 cash through an installment plan. He paid $3,456 as down payment. The balance was settled by making 14 monthly payments. If the interest charge was 14% per annum on the original balance, find;
(a) the total interest charged
(b) the monthly payment
(c) the instalment price
Question Number 3 (three).
A laptop is purchased for $1,850. Operating expenses amount to 8.5% of the cost. if the retailer wants a 9.5% net profit based on the retail, find;
(a) the retail price
(b) the gross profit
(c) the net profit
(d) the breakeven price
(e) the maximum markdown percent that can be offered so that no loss is incurred.