Using 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. Face Value Discount Rate (%) Term (days) Bank Discount Proceeds Effective Rate (%) $6,805 10.19 71 $ $ %

Using 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. Face Value Discount Rate (%) Term (days) Bank Discount Proceeds Effective Rate (%) $6,805 10.19 71 $ $ %

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 18P

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Face Value	Discount Rate (%)	Term (days)	Bank Discount	Proceeds	Effective Rate (%)
$6,805	10.19	71	$	$	%

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