Question

A plumbing contractor receives proceeds of $4,713.54 on a 12.5% simple discount note with a face value of $5,000. Find the time of the note in days. (Assume a 360-day year.) Do not round intermediate calculations!

Answer 1

I = Prt
t = I/(Pr)
.. = (5000 -4713.54)/(5000*0.125)
.. = 165/360

The time period of the note is 165 days.