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The bank discount of a 90 - day simple discount note for $ 18,000 with an 8\% discount rate is :
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- Calculate the bank discount and proceeds for the following simple discount note. Use the ordinary interest method, 360 days, when applicable. Round your answers to the nearest cent. Face Value Discount Rate (%) Term Bank Discount Proceeds $32,000 10.05 6 months $ $The face value of a simple discount note is $4,000. The bank discount is calculated at 12% for 60 days. Use ordinary interest. Calculate:A.Amount of interest charged for noteB.Amount borrower would receiveC.Amount payee would receive at maturityD.Effective rate Note: round to the nearest hundredth of a percentCalculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary interest method, 360 days, when applicable. (Round your answers to the nearest cent.) Face Value Discount Rate (%) Term Bank Discount Proceeds $85,000 9.85 11 months $ $
- Compute (A) bank discount, (B) proceeds for the following simple discount (use ordinary interest), and (C) the effective interest rate to nearest hundredth percent.Face Value = $12,000, Discount Rate = 10%, Time = 125 days Bank discount Simple discount Interest rate %A $7,000, 4%, 120-day note dated March 20 is discounted on July 15. Assuming a 3% discount rate, the bank discount is: Multiple Choice $1.74 $1.77 $93.33 $70.00Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and effective rate (as a %) for the simple discount note. Round dollars to the nearest cent and round effective rate to the nearest hundredth of a percent. FaceValue DiscountRate (%) Term(days) BankDiscount Proceeds EffectiveRate (%) $6,905 10.49 74
- Calculate the bank discount and proceeds for the following simple discount notes. Usethe ordinary interest method, 360 days, when applicable.Face Value Discount Rate (%) Term Bank Discount Proceeds$4,500 13 6 months $292.50 $4,207.50The face value of a simple interest note and bank discount note is $8,000each. Assume both notes have 8.75 percent interest rates for 60 days.Calculate the following:a. The amount of interest charged for each.b. The maturity value of the simple interest note.c. The maturity value of the bank discount note.d. The amount the borrower receives for the simple interest note.e. The amount the borrower receives for the bank discount note.The face value of a simple discount note is $17,000. The discount is 4% for 160 days. Calculate the following.a. Amount of interest charged for each note. (Round your answer to the nearest cent.) Amount of interest b. Amount borrower would receive. (Round your answer to the nearest cent.) Amount receive c. Amount payee would receive at maturity. Amount receive at maturity d. Effective rate (Round your answer to the nearest tenth percent.) Effective rate %
- You sign a simple discount promissory note for $7,000 at a discount rate of 3%, for 36 months.A bank obtains an 8-month T-bill at a discount rate of 8%. What is the simple interest rate?Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) FaceValue DiscountRate (%) Date ofNote Term(days) MaturityDate Bank Discount(in $) Proceeds(in $) $71,000 5 May 3 51 $ $
