Question

On July 18, Lester accepted a $15,000, 7 3/4%, 180-day note from Ryan O'Flynn. On October 5, Lester discounted the note at Brome Bank at 8 1/4%, What proceeds did Lester receive? Use ordinary interest.

Answer 1

Answer:

so Lester receive money is $13762.5  

Step-by-step explanation:

Given data in question

principal = $15000

discount = 8* 1/4 % i.e. = 8.25% = 0.0825

to find out

Lester receive money ?

solution

we know ordinary interest formula i.e.

receive money = principal ( 1 - discount )  ...........1

we all value principal and discount in equation 1 and we get receive money

receive money = principal ( 1 - discount )

receive money = $15000 ( 1 - 0.0825)

receive money = $ 13762.5  

so Lester receive money is $13762.5