Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 8%. Use the ordinary interest method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Face value. (principal) $ 50,400 Rate of interest 9% Length of note 90 days Maturity value Date of note January 12 Date note discounted February 3 Discount period 68 days Bank discount Proceeds
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 8%. Use the ordinary interest method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.) Face value. (principal) $ 50,400 Rate of interest 9% Length of note 90 days Maturity value Date of note January 12 Date note discounted February 3 Discount period 68 days Bank discount Proceeds
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Face value
(principal)
$
TABLE 7-1
50,400
Day of
month
1
2
3
4
Rate of
interest
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
25
26
27
28
29
30
31
31
Jan.
9%
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
Exact days-in-a-year calendar (excluding leap year)"
Length of
note
90 days
28
Feb.
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
31
Mar.
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
30
Apr.
Maturity
value
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
31
May
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
30
31
31
30
June July Aug. Sept.
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
171
172
173
174
175
176
177
178
179
180
181
182
183
184
185
186
187
188
Date of
note
January 12
189
190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
228
229
230
231
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
Date note
discounted
February 3
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
31
Oct.
274
275
276
277
278
279
280
281
282
283
284
285
286
287
288
289
290
291
292
293
294
295
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 8%. Use the ordinary interest.
method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
296
297
298
299
300
301
302
303
304
30
Nov.
Discount period
68 days
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
320
321
322
323
324
325
326
327
328
329
330
331
332
333
334
31
Dec.
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
362
363
364
365
Bank discount
Proceeds
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