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An investor lends $5000 and receives a promissory note promising repayment of the loan in...

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An investor lends $5000 and receives a promissory note promising repayment of the loan in 90 days with 12% simple interest. This note is immediately sold to a bank which charges 10% simple interest. (a) How much does the bank pay for the note? (b) What is the investor's profit? (c) What is the bank's profit on this investment when the note matures? Ans. (a) $5024.39; (6) $24.39; (c) $125.61

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