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lubasha [3.4K]
3 years ago
7

A $15,000, 11 percent, 120-day note, dated Sept. 3, is discounted on Nov. 11. Assuming a bank discount rate of 9 percent, the pr

oceeds would be____________.
1. $15,550.00
2. $15,351.74
3. $15,531.74
4. $15,135.47
Mathematics
1 answer:
Fantom [35]3 years ago
8 0
First find the maturity value of the note, 15000+[15000*0.11*120/360]=15,550then find the term of discount,120-[27+31+11]=51daysthen multiply the maturity value by discount rate and the term of discount, 15,550*0.09*51/360=198.26then get the difference between the maturity value and the discount,15550-198.26=15,351,74So,the proceeds is 15,351.74 which is #2
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