Carrie Umholtz held a $3,200, 105-day note dated July 7, bearing interest at 9.6%. On August 11, Carrie took the note to a finance company which discounted it at 11.3%. Use a 365-day year to find the missing information on the loan.
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Learning Objectives

• Assess the maturity value of notes by leveraging varied day count strategies, namely the 360-day and 365-day year systems.
• Elaborate discounts on financial borrowings and digest the core principles of the discount approach.
• Foster the skill to appraise and reckon the real interest rates based on the proceeds rather than the face value of the loan.