Solve for maturity value, discount period, bank discount, and proceeds. Assume a
ID: 2704395 • Letter: S
Question
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 13.5%. Use the ordinary interest method. (Use table value.) (Use 360 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "$" sign in your response.)
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 13.5%. Use the ordinary interest method. (Use table value.) (Use 360 days a year. Do not round intermediate calculations and round your final answers to 2 decimal places. Omit the "$" sign in your response.)
Exact days-in-a-year calendar (excluding leap year)*Explanation / Answer
July 11 192 days
June 12 -163 days
(192-163)= 29 days
27000x.135x80/360= 810
Maturity value= 810+27000= $278100
Discount period= 80-29= 51 days
Bank discount= 278100x.135x51/360= $5318.66
Proceeds= 278100 -5318.6625= $272781.34
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.