For services rendered, an attorney accepts a 90-day note for $5,000 at 7% simple interest from a client. (Both interest and principal are repaid at the end of 90 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $5,060 after 60 days. What annual interest rate will the third party receive for the investment? The third party will receive an annual interest rate of %. (Type an integer or decimal rounded to two decimal places as needed.)

For services rendered, an attorney accepts a 90-day note for $5,000 at 7% simple interest from a client. (Both interest and principal are repaid at the end of 90 days.) Wishing to use her money sooner, the attorney sells the note to a third party for $5,060 after 60 days. What annual interest rate will the third party receive for the investment? The third party will receive an annual interest rate of %. (Type an integer or decimal rounded to two decimal places as needed.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 19P

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