DRILL PROB10 he following table for these simple discount notes, Use the o Disco
ID: 2810829 • Letter: D
Question
DRILL PROB10 he following table for these simple discount notes, Use the o Discount mediunt Proceeds rate 2(% Amount due at maturity Bank Time LU I 190 days 11-1. $4,250 61% 180 days 11-2. $2,900 gulate the discount period for the bank to wait to receive its money: LU 112 Date of note Length of note Date note discounted Discount period 11-3. April 12 45 days May 2 11-4. March 7 20 days June 8 for maturity value, discount period, bank discount, and proceeds (assume for Problems 1-9 a rate of 9%). LU 11-2(1,2) Solve Face value Rate of Length of Maturity Date of Date note lu (principal) interest note te note Discount note discounted peried disc June 10 July 18 value 11-5, $50,000 11% 95 days July 10 1-6, June 8 $25,000 9% 60 daysExplanation / Answer
Question 1
solution (11-1). Bank discount =$4,250 * 2.5%* 190/365= $55.31
Net proceeds = $4,250 - 55.31= $4,194.69
(11-2). Bank discount = $2,900 * 6.25% * 180/365 = $89.38
Net proceeds = $2,900- 89.38 = $2,810.62
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