4. Tim Garcia has a bad credit history partly due to a divorce. The bank agrees to lend him funds based on a note with a face value of $9400, but it requires him to use his truck as collateral. Even...

9

Extracted text: 4. Tim Garcia has a bad credit history partly due to a divorce. The bank agrees to lend him funds based on a note with a face value of $9400, but it requires him to use his truck as collateral. Even then, the bank charges him a high 16%, discount rate. Find (a) the proceeds and (b) the effective rate if the note is for 7 months.