An interest bearing promissory note for 90 days at 5.6% p.a. has a face value of $120,000. If the note is discounted 20 days ofter the issue date at a rate of 6.8% p.a., calculate the amount of discount.

Q: If you sign a discount note for $5,500 at a bank discount rate of 9% for 3 months, what is the…

A: Effective interest rate is the amount of money saved on an investment when compounding concept is…

Q: calculate the interest, purchase price, and effective interest rate of a $50,000, 2.3%, 26 week…

A: Effective annual rate (EAR) refers to a real interest rate which an investor is expect from his…

Q: An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a.…

A: Here, Face value = 5,500 Interest rate = 4.75% Discount rate = 6.75% Time to maturity = 180 days…

Q: If you sign a discount note for $7,500 at a bank discount rate of 9% for 9 months, what is the…

A: Effective Annual Rate: The effective annual rate of interest is the actual or the real rate of…

Q: A note with a face value of $4300 is discounted at 3%. If the discount was $21, find the length of…

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Q: If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.9% for a period of 26…

A: Given information: Face value is $26,000 Discount rate is 4.9% Number of periods is 26 weeks

Q: The bank discount of a 90 - day simple discount note for $ 18,000 with an 8\% discount rate is :

A: The conceptual formula is:

Q: You sign a simpie discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What…

A: Given: Discount rate = 5% Amount = $7,000 Period = 30 months

Q: After being held for 40 days, a 120-day, 12 % interest bearing note receivable was discounted at a…

A: The net proceeds are the amount the seller received at the time of the maturity of the note which is…

Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…

Q: Use the ordinary interest method, 360 days, to solve the fol problem. Round to the nearest cent when…

A: Interest amount on promissory note = note value (principal) x rate x time /100

Q: You were offered either a simple interest note or a simple discount note with the following terms:…

A: For Simple discount note: Market Value of the note is $33,353 and interest is $3,502.065 Therefore,…

Q: Nabras borrows OMR 4800 for 10 months at a simple interest rate of 8% per year. Determine the…

A: Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: A company issues 4% loan notes with a nominal value of $20,000,000. The loan notes are issued at a…

A: Loan Notes: Loan notes or loan stocks are financial instruments that helps the issuer to raise…

Q: A £12,000 T-bill is purchased at a 4.05% discount rate for 40 weeks. Find the maturity value of the…

A: t bills are sold at discount to par is face value equals to its maturity value.

Q: Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The…

A: Interest rate can be calculated as: = Discount amount / Present value * 365/ Days to maturity * 100

Q: A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an…

A: Formula: Interest amount = Loan amount x Interest rate x Time period

Q: A credit is paid as follows: a down payment corresponding to 30% of the value of the credit, 16…

A: Fist we need to calculate present value of all payments starting at 3 months after by using annuity…

Q: The interest charged on a $420000 note payable, at the rate of 6%, on a 60-day note would be

A: Interest expenses = Notes payable amount * Rate * Days / 365

Q: What are the proceeds (in $)?

A: A promissory note is a written form in which one party promises ta pay to other party for some…

Q: The interest on a 6%, 60-day note for $5,000 is $300. O True O False

A: Interest  = Note value × Interest rate ×60/360

Q: Find the discount and proceeds on a $3,240 face-value note for six months if the discount rate is…

A: Net Proceeds: It is the amount received by an individual after deducting a discount and expenses.

Q: elect the correct answer and explain What is the discount to a promissory note with a face value of…

A: In this we have calculate the discount on note using simple interest rate given.

Q: A simple discount rate has face value of php 28,000.00 and proceeds of php 27,000.00. find the…

A: The question is based on the concept of the time value of money, the discounted value is calculated…

Q: Determine the maturity date, interest at maturity, and maturity value for a 90-day, 10 percent,…

A: Given:  Note value : $36000 Interest rate = 10% Bill date : 15 Feb Due date = 90 days

Q: A promissory note has a face value of $5175.00 and it has a date of issue of April 2 this year. The…

A: Promissory Note is considered as the promise made to the person for the payment of money after…

Q: A promissory note with a maturity value of 1300 matures in 60 days. The note is sold 23 days before…

A: Given that: Maturity Value= 1300 n=60 Discount Rate (r)=5.5%

Q: A promissory note with a maturity value of $700 is sold at a discount rate of 8%, 45 days before…

A: A promissory note is a financial instrument issued by the seller or borrower to pay a predetermined…

Q: The face value of a simple interest note and bank discount note is $8,000each. Assume both notes…

A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…

Q: The interest charged on a $350,000 note payable, at the rate of 6%, on a 60-day note would be Group…

A: Notes Payable: Notes payable is a debt agreement between two parties. Under this agreement, a…

Q: What is the effective interest rate of a simple discount note for $31,200, at an ordinary bank…

A: Introduction: The effective interest rate is the loan usage rate that a borrower pays. It is also…

Q: Mike Drago took out a for $3,900 at the Gold Coast Bank for 270 days. If the bank uses the ordinary…

A: Rate of Interest = Amount of Interest / (Principal * time)

Q: The Sample Company discounts a $100,000 note receivable on 15 Máy 20x2. The following facts are…

A: Maturity value can be calculated as sum of principal and interest. Further, the discount amount can…

Q: The balance on a credit card, that charges a 20% APR interest rate, over a 1 month period is given…

A: Average daily balance is the average of the monthly expenses   Date No of days Balance…

Q: An interest-bearing note for 118 days at 6.4% p.a. simple interest has a face value of $4053. If the…

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

Q: Calculate the price of a 180-day Treasury bill purchased at a 5% discount rate if the T-bill has a…

A: Time period is 180 days Discount rate is 5% Face value or FV is E5,000 To Find: Price of T- bill

Q: You were offered either a simple interest note or a simple discount note with the following terms:…

A: a. The computation of effective interest rate when offered simple interest note as follows:   The…

Q: Federal Savings Bank is offering a 6-month CD (certificate of deposit) with a rate of 4.5%…

A: The real interest that an investor earns on the investment and a borrower pays on loan after…

Q: The interest charged on a $234000 note payable, at the rate of 6%, on a 90-day note would be (Use…

A: Note​ payable: Note​ payable is also referred as promissory note. In this, borrower obtains a…

Q: Kate Davidson signed a simple discount note for $9000 the discount rate is 5% and the term of the…

A: In finance, a simple discount note is a promissory note in which a borrower promises to repay the…

Q: The face value of a simple interest note and blank discount note is $8,000 each.   Assume both notes…

A: The provided information are: Face value for both simple interest note and blank discount rate =…

Q: Calculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary…

A: Bank discount  = face value  × discount rate × number of years

Q: Calculate the missing amount for each of the following notes receivable.Face Value      Annual…

A: Note receivable:   Note receivable refers to a written promise received by the creditor from the…

Q: Try to calculate the effective interest rate for a $1789 simple discount note at 5.25% for 15…

A: Computation of the effective interest rate:Hence, the effective interest rate is 5.62%.

Q: The face value of a simple discount note is $17,000. The discount is 4% for 160 days. Calculate the…

A: Given information in question Simple discount note is $17,000 Discount is 4% for 160 days Purchase…

Q: If you purchase $26,000 in U.S. Treasury Bills with a discount rate of 4.3% for a period of 26…

A: An effective interest rate is defined as an interest rate on the loan or financial product used to…

Q: A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that…

A: Given information is: Face value of Note = BD 2600 Period = 3 years Compound interest rate = 6% Bank…

Q: JAB Consulting received a promissory note of $13,500 at 9% simple interest for 15 months from one of…

A: A promissory note refers to a legal instrument in which the promise is made in writing that the…

Q: Using ordinary interest, 360 days, calculate the missing information for the simple discount note.…

A: BANK DISCOUNT =FACE VALUE ×DISCOUNT RATE ×TIME PROCEEDS=FACE VALUE - BANK DISCOUNT

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.