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tiny-mole [99]
3 years ago
12

Find the proceeds for the simple discount note.

Mathematics
1 answer:
Ronch [10]3 years ago
8 0
Given:
<span>Face value $4,530,
discount rate 7.2%,
time 125 days

Discount on Simple Discount note:
Discount = Maturity Value * discount rate * term
Discount = 4,530 * 0.072 * 125/360
Discount = 113.25

Proceeds for the simple discount note
Proceeds = Maturity Value - Discount
Proceeds = 4,530 - 113.25
Proceeds = 4,416.75

The proceeds for the simple discount note is $4,416.75</span>
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