Chapter 10.III, Problem 6RE

BuyFind*arrow_forward*

8th Edition

Robert Brechner + 1 other

ISBN: 9781305585447

Textbook Problem

Using ordinary interest, 360 days, calculate the missing information for the following simple discount notes.

Face |
Discount |
Date of |
Term |
Maturity |
Bank |
||||||||

Value |
Rate(%) |
Note |
(days) |
Date |
Discount |
Proceeds |
|||||||

6. $16,800 | 10 | June 3 | 80 | Aug. 22 | $373.33 | $16,426.67 |

To determine

**To calculate:** The amount of bank discount, proceeds value and maturity date using the ordinary interest method where face value is

Explanation

**Given Information:**

Face value is

**Formula used:**

The formula to compute the amount of bank discount is,

The formula to calculate amount of proceeds is,

Steps for determining maturity date are:

Step1. Calculate the number of days that are left in the month in which loan was 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 loan.

Step3. Keep on subtracting the days from consequent months until the maturity date corresponds to the difference.

**Calculation:**

Consider that face value of loan is

Simplify the discount rate as,

Evaluate the time using the ordinary interest method,

Compute the amount of bank discount by substituting

Sect-10.I P-1TIESect-10.I P-2TIESect-10.I P-3TIESect-10.I P-4TIESect-10.I P-5TIESect-10.I P-6TIESect-10.I P-1RESect-10.I P-2RESect-10.I P-3RESect-10.I P-4RE

Sect-10.I P-5RESect-10.I P-6RESect-10.I P-7RESect-10.I P-8RESect-10.I P-9RESect-10.I P-10RESect-10.I P-11RESect-10.I P-12RESect-10.I P-13RESect-10.I P-14RESect-10.I P-15RESect-10.I P-16RESect-10.I P-17RESect-10.I P-18RESect-10.I P-19RESect-10.I P-20RESect-10.I P-21RESect-10.I P-22RESect-10.I P-23RESect-10.I P-24RESect-10.I P-25RESect-10.I P-26RESect-10.I P-27RESect-10.I P-28RESect-10.I P-29RESect-10.I P-30RESect-10.I P-31RESect-10.I P-32RESect-10.I P-33RESect-10.I P-34RESect-10.I P-35RESect-10.I P-36RESect-10.I P-37RESect-10.I P-38RESect-10.I P-39RESect-10.I P-40RESect-10.I P-41RESect-10.I P-42RESect-10.I P-43RESect-10.I P-44RESect-10.I P-45RESect-10.I P-46RESect-10.I P-47RESect-10.II P-7TIESect-10.II P-8TIESect-10.II P-9TIESect-10.II P-10TIESect-10.II P-1RESect-10.II P-2RESect-10.II P-3RESect-10.II P-4RESect-10.II P-5RESect-10.II P-6RESect-10.II P-7RESect-10.II P-8RESect-10.II P-9RESect-10.II P-10RESect-10.II P-11RESect-10.II P-12RESect-10.II P-13RESect-10.II P-14RESect-10.II P-15RESect-10.II P-16RESect-10.II P-17RESect-10.II P-18RESect-10.II P-19RESect-10.II P-20RESect-10.II P-21RESect-10.II P-22RESect-10.II P-23RESect-10.II P-24RESect-10.II P-25RESect-10.II P-26RESect-10.II P-27RESect-10.II P-28RESect-10.II P-29RESect-10.II P-30RESect-10.II P-31RESect-10.II P-32RESect-10.II P-33RESect-10.II P-34RESect-10.II P-35RESect-10.II P-36RESect-10.II P-37RESect-10.III P-11TIESect-10.III P-12TIESect-10.III P-13TIESect-10.III P-14TIESect-10.III P-1RESect-10.III P-2RESect-10.III P-3RESect-10.III P-4RESect-10.III P-5RESect-10.III P-6RESect-10.III P-7RESect-10.III P-8RESect-10.III P-9RESect-10.III P-10RESect-10.III P-11RESect-10.III P-12RESect-10.III P-13RESect-10.III P-14RESect-10.III P-15RESect-10.III P-16RESect-10.III P-17RESect-10.III P-18RESect-10.III P-19RESect-10.III P-20RESect-10.III P-21RESect-10.III P-22RESect-10.III P-23RESect-10.III P-24RESect-10.III P-25RESect-10.III P-26RESect-10.III P-27RESect-10.III P-28RESect-10.III P-29RECh-10 P-1CRCh-10 P-2CRCh-10 P-3CRCh-10 P-4CRCh-10 P-5CRCh-10 P-6CRCh-10 P-7CRCh-10 P-8CRCh-10 P-9CRCh-10 P-10CRCh-10 P-11CRCh-10 P-12CRCh-10 P-13CRCh-10 P-14CRCh-10 P-1ATCh-10 P-2ATCh-10 P-3ATCh-10 P-4ATCh-10 P-5ATCh-10 P-6ATCh-10 P-7ATCh-10 P-8ATCh-10 P-9ATCh-10 P-10ATCh-10 P-11ATCh-10 P-12ATCh-10 P-13ATCh-10 P-14ATCh-10 P-15ATCh-10 P-16ATCh-10 P-17ATCh-10 P-18ATCh-10 P-19ATCh-10 P-20ATCh-10 P-21ATCh-10 P-22ATCh-10 P-23ATCh-10 P-24ATCh-10 P-25ATCh-10 P-26ATCh-10 P-27ATCh-10 P-28ATCh-10 P-29ATCh-10 P-30ATCh-10 P-31ATCh-10 P-32ATCh-10 P-33ATCh-10 P-34ATCh-10 P-35ATCh-10 P-36ATCh-10 P-37AT

Precalculus: Mathematics for Calculus (Standalone Book)

Essentials of Statistics for The Behavioral Sciences (MindTap Course List)

Elementary Geometry For College Students, 7e

Calculus: An Applied Approach (MindTap Course List)

Mathematical Excursions (MindTap Course List)

Finite Mathematics and Applied Calculus (MindTap Course List)

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Multivariable Calculus

Single Variable Calculus

Applied Calculus

Single Variable Calculus: Early Transcendentals, Volume I

Probability and Statistics for Engineering and the Sciences

Mathematical Applications for the Management, Life, and Social Sciences

Elementary Technical Mathematics

Calculus (MindTap Course List)

Essentials Of Statistics

Calculus: Early Transcendental Functions

Finite Mathematics

Understanding Basic Statistics

Intermediate Algebra

Statistics for The Behavioral Sciences (MindTap Course List)

Calculus: Early Transcendentals

Trigonometry (MindTap Course List)

Elements Of Modern Algebra

Single Variable Calculus: Early Transcendentals

Calculus of a Single Variable

Calculus: Early Transcendental Functions (MindTap Course List)

Finite Mathematics for the Managerial, Life, and Social Sciences

Elementary Geometry for College Students

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th

Study Guide for Stewart's Multivariable Calculus, 8th

Research Methods for the Behavioral Sciences (MindTap Course List)

Statistics for Business & Economics, Revised (MindTap Course List)

Multivariable Calculus

Mathematics For Machine Technology

STATISTICS F/BUSINESS+ECONOMICS-TEXT

College Algebra (MindTap Course List)

Mathematics: A Practical Odyssey

Research Methods for the Behavioral Sciences (MindTap Course List)

Calculus (MindTap Course List)

Introduction To Statistics And Data Analysis