Using ordinary interest, calculate the missing information for the following simple discount notes.
21.  $875,000 

Oct. 25  87 
To calculate: The amount of bank discount, proceeds value and maturity date where face value is
Given Information:
Face value is
Formula used:
The formula to compute the amount of bank discount is,
The formula to calculate the amount of proceeds is,
Steps for determining maturity date are:
Step1. Calculate the number of days that are left in the month loan is taken by subtracting the loan date from the number of days in the month.
Step2. Subtract the number of days remaining in the first month from the total duration of the loan.
Step3. Keep on subtracting the days from consequent months until the maturity date corresponds to the difference.
Calculation:
Consider that the face value of the loan is
Simplify the discount rate as
Evaluate the time as,
Substitute
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