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 note B.Amount borrower would receive C.Amount payee would receive at maturity
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 note B.Amount borrower would receive C.Amount payee would receive at maturity
Chapter12: Current Liabilities
Section: Chapter Questions
Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...
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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 note
B.Amount borrower would receive
C.Amount payee would receive at maturity
D.Effective rate Note: round to the nearest hundredth of a percent
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