6%, 110-days note dated 31 August 2019 has a maturity value of RM4,073.33. On 12th October 2019, the note is discounted and the proceeds received are RM4,019.47. Find: The face value of the note The bank discount rate that is charged when the note is discounted.

6%, 110-days note dated 31 August 2019 has a maturity value of RM4,073.33. On 12th October 2019, the note is discounted and the proceeds received are RM4,019.47. Find: The face value of the note The bank discount rate that is charged when the note is discounted.

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 26E

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Question

A 6%, 110-days note dated 31 August 2019 has a maturity value of RM4,073.33. On 12^th October 2019, the note is discounted and the proceeds received are RM4,019.47. Find:

1. The face value of the note
2. The bank discount rate that is charged when the note is discounted.

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