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horsena [70]
2 years ago
11

Aster corporation accepted a $20,000, 9 percent 120-day note dated august 25 from lee company in settlement of a past bill. On O

ctober 25, Aster Corporation decided to discount the note at a discount of 8 percent. The proceeds to Aster Corporation are (blank)
Mathematics
1 answer:
serious [3.7K]2 years ago
6 0

Answer:

$20, 533.33

Step-by-step explanation:

From the question, we are given the following values

Principal = $20000

Rate = 8% = 0.08

Time( in years) = 120days = 4 months = 4/12 years = 1/3 years

Interest = Principal × Rate × Time

Interest = 20,000 × 0.08× (1/4)

Interest = $533.33

Hence, the proceeds to Aster Corporation are

$20000 + $533.33

= $20,533.33

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