Using ordinary interest, calculate the missing information for the following simple discount note: Face Value Discount rate (%) Date of Note Term (days) Maturity Date Bank Discount Proceeds $60,500 11.5 March 2nd 150

Advanced Engineering Mathematics
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ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
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Using ordinary interest, calculate the missing information for the following simple discount note:

Face Value Discount rate (%) Date of Note Term (days) Maturity Date Bank Discount Proceeds
$60,500 11.5 March 2nd 150
Expert Solution
Step 1

We are given that the date of note is Mar 2 and the term is 150 days.

From maturity date:

2nd to 31st March - 29 days

1st to 30th April-30 days

1st to 31st May-31 days

1st to 30th June=30 days

1st to 30th July=30 days

We now have 150=29+30+31+30+30. Therefore, by adding 150 days to Mar 2, we get the maturity date to be July 30.

Hence, the required maturity date is July 30.

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