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5. Mickey borrowed $11,300 from Donald on Dec, 4, 2012 and agreed to pay Donald in 150 days at 6.45% interest. On Feb. 28, 2013, Donald sold the note to Minnie at a discount of 5%. How much did Minnie pay to Donald? How much does Mickey pay to Minnie? Solution minnie pays to donald : 11,300 -(11, 300 *5/100) = 10,735 (prinipal - 5 percent discount on the prinicipal ) mickey pays to minnie = Prinipal * rate *time /100 =>11,300 *6.45 *365/86 *365 *100 (converting rate into days) => 8.475 dollars.

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5. Mickey borrowed $11,300 from Donald on Dec, 4, 2012 and agreed to pay Donald in 150 days at 6.45% interest. On Feb. 28, 2013, Donald sold the note to Minnie at a discount of 5%. How much did Minnie pay to Donald? How much does Mickey pay to Minnie? Solution minnie pays to donald : 11,300 -(11, 300 *5/100) = 10,735 (prinipal - 5 percent discount on the prinicipal ) mickey pays to minnie = Prinipal * rate *time /100 =>11,300 *6.45 *365/86 *365 *100 (converting rate into days) => 8.475 dollars

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  • 1. 5. Mickey borrowed $11,300 from Donald on Dec, 4, 2012 and agreed to pay Donald in 150 days at 6.45% interest. On Feb. 28, 2013, Donald sold the note to Minnie at a discount of 5%. How much did Minnie pay to Donald? How much does Mickey pay to Minnie? Solution minnie pays to donald : 11,300 -(11, 300 *5/100) = 10,735 (prinipal - 5 percent discount on the prinicipal ) mickey pays to minnie = Prinipal * rate *time /100 =>11,300 *6.45 *365/86 *365 *100 (converting rate into days) => 8.475 dollars