An interest-bearing note for 118 days at 6.4% p.a. simple interest has a face value of $4053. If the note is settled in 50 days at adiscounted rate of 12.5% p.a., calculate the proceeds.Write your answer rounded to two decimal places.Answer:

Notes are issued to discount that is interest and number of days to maturity of note. Proceeds from…

Answered: An interest-bearing note for 118 days…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 6CE: Use Future Value and Present Value Tables to Apply Compound Interest to Accounting Transactions...

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An interest-bearing note for 118 days at 6.4% p.a. simple interest has a face value of $4053. If the note is settled in 50 days at discounted rate of 12.5% p.a., calculate the proceeds. Write your answer rounded to two decimal places.