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For services rendered, an attorney accepts a 90 day note for $6,058 at 12% simple interest from a client. (Bot


For services rendered, an attorney accepts a 90 day note for $6,058 at 12% simple interest from a client. (Both interest and principal will be repaid at the end of 90 days.) Wishing to be able to use the money sooner, the attorney sells the note to a third party for $6,092 after 30 days. What annual interest rate will the third party recieve for the investment? Express your answer as a decimal correct to three places.

I'm really bad at Finite and i want to do really well on my quiz and all of the extra practice I can get is needed. some formulas we've been using are A=P(1+rt) and I=Prt.
also when using these forulas, for simple interest we use 360 days in a year and compund interest we use 365 days in a year. dont know why.

14.5508 %

the interest on each 30 day period is $60.58, so the original total interest due from the note the attorney accepted was $181.74

The 3rd party paid $34 over original note value, so his net interest received is $147.74 (181.74-34.00)

calculate interest rate (147.74/6092) * 6 = .145508 or 14.5508%

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