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lesantik [10]
3 years ago
7

On August 1, Batson Company issued a 60-day note with a face amount of $49,800 to Jergens Company for merchandise inventory. (As

sume a 360-day year is used for interest calculations.) a. Determine the proceeds of the note assuming the note carries an interest rate of 8%. fill in the blank 1 b. Determine the proceeds of the note assuming the note is discounted at 8%.
Business
1 answer:
jok3333 [9.3K]3 years ago
5 0

Answer: See explanation

Explanation:

a. Determine the proceeds of the note assuming the note carries an interest rate of 8%.

The proceeds of the note is the face value which is $49800.

b. Determine the proceeds of the note assuming the note is discounted at 8%.

Face amount: $49800

Less: Interest = $49800 × 8% × 60/360 = $664

Proceed of the note = $49136

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2 years ago
A one-year call option contract on Cheesy Poofs Co. stock sells for $1,250. In one year, the stock will be worth $57 or $78 per
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