A 90-day note promises to pay 6,500 plus simple interest of 6 3/4%. It is discounted at 5 4/5% simple discount 20 days before maturity. Find the maturity value of the note and the proceeds of
Q: If you sign a discount note for $5,500 at a bank discount rate of 9% for 3 months, what is the…
A: Effective interest rate is the amount of money saved on an investment when compounding concept is…
Q: Kylah Enterprises signs a 3-month, noninterest-bearing note with a stated rate of 13.5% and a…
A: Given, Principal =$215,000 Interest =13.5% Computation of interest =$215,000 * 13.5% *3/12…
Q: A note with a face value of $4300 is discounted at 3%. If the discount was $21, find the length of…
A: Calculation of length of the loan in days:The length or duration of the loan is approximately 60…
Q: TORR, Inc. issues a $600,000, 9%, five-year note payable on January 1, 20X5. If the monthly payment…
A: Interest for first month = face value of the note payable x interest rate x no. of months/12 =…
Q: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400 what is the…
A: Interest is calculated on the principal amount borrowed by the business. In the given case if…
Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…
A: compute the proceeds that R receives on note: Bank discount=MV×Bank discount rate×Discount…
Q: John Doe has a choice of two different notes that both have a a face value ( principal) of $15,000…
A: Simple Interest Note: 15000 x 8% x 60/360 = $200 simple discount Note = Interest Owed will be zero…
Q: You sign a simpie discount promissory note for $7,000 at a discount rate of 5%, for 30 months. What…
A: Given: Discount rate = 5% Amount = $7,000 Period = 30 months
Q: A six-month note would mature on 15 December 2020 with a maturity value of RM3750. The note is…
A: A creditor who holds an accepted note receivable may hold the note till maturity and present it for…
Q: 200-day note has interest of $8000 and a rate of 10%. Find the maturity
A:
Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…
A: Frist we need to calculate the bank discount by using this equation Bank discount =Maturity…
Q: ABC’s bank offered a loan with conditions of a P5,000,000 face amount, 6-month term, 4% interest…
A: Effective annual interest rate is the interest rate which an investor expects in a year after taking…
Q: A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year.…
A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…
Q: Use the ordinary interest method, 360 days, to solve the fol problem. Round to the nearest cent when…
A: Interest amount on promissory note = note value (principal) x rate x time /100
Q: Leopard Co. uses the installment sales method to recognize revenue. Customers pay the installment…
A: ANSWER : Notes reported at the present value which is amount net of which interest is to be…
Q: Sydney limited draws a promissory note with a face value of $50 000 and a maturity of 181 days. The…
A: Interest rate can be calculated as: = Discount amount / Present value * 365/ Days to maturity * 100
Q: A $12,000 non-interest-bearing promissory note is discounted at 6% compounded monthly, three years…
A: Maturity amount (MV) = $12,000 Interest rate = 6% Monthly interest rate (r) = 6%/12 = 0.50% Period =…
Q: on June 8th Alton Co issued an $70620 11% 120 Day note payable to seller Co. Assuming a 360 day year…
A: Interest on Note = Face value of Note x rate of interest x No. of days /360 days =…
Q: The interest charged on a $420000 note payable, at the rate of 6%, on a 60-day note would be
A: Interest expenses = Notes payable amount * Rate * Days / 365
Q: #7 The face value of a simple interest note and blank discount note is $8,000 each. Assume both…
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…
Q: You decide to discount a$5250, 345-day note at 3% to your bank at a discount rate of 4.5% on day…
A: Calculation of Proceeds:Assuming there are 360 days in a year.The proceeds are $5,309.80.Excel…
Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…
A: The promissory note is a legal instrument that is written by one party to another by making a…
Q: If you sign a discount note for $2500 at a bank discount rate of 7% for 3 months what is the…
A: The rate that is actually earned on an investment is called the effective interest rate. It is also…
Q: The interest on a 6%, 60-day note for $5,000 is $300. O True O False
A: Interest = Note value × Interest rate ×60/360
Q: The maturity value of a 12%, 60-day note for $5,000 is $5,600. Please explain your answer with…
A: Face value of the note $5,000 Interest rate 12% Maturity period 60 days
Q: Would you rather borrow $10,000 by issuing (a) a 90-day, 15 percent note or (b) a 90-day, discounted…
A: The question 1 is based on the concept of Financial Accounting. The question 2 cannot be answered as…
Q: Assuming a 360-day year, when a $14,700, 90-day, 12% interest-bearing note payable matures, total…
A: The term note payable refers to the promissory agreement between two parties in which one party…
Q: A promissory note with a maturity value of $700 is sold at a discount rate of 8%, 45 days before…
A: A promissory note is a financial instrument issued by the seller or borrower to pay a predetermined…
Q: The face value of a simple interest note and bank discount note is $8,000each. Assume both notes…
A: “Hey, since your question has multiple sub-parts, we will solve first three sub-parts for you. If…
Q: The interest charged on a $350,000 note payable, at the rate of 6%, on a 60-day note would be Group…
A: Notes Payable: Notes payable is a debt agreement between two parties. Under this agreement, a…
Q: What is the maturity value of a 45-day note for $1,250 that is dated for May 23 and with interest at…
A: solution we are required to calculate the maturity value of 45 day note for $1250 interest rate…
Q: Cerise Company would record a note payable of_____, if the terms of the loan with a bank are as…
A: Present value (PV) of an future amount is equal amount of such at present, discounted at a…
Q: Find the maturity value of a note for 15,000 pesos at 12% ordinary simple interest for 182 days.
A: Ordinary simple interest makes use of 360 days in a year. It does not uses 365 days in a year.
Q: Daayata Department Store wishes to discount two notes receivable arising from the sale of…
A: Bank discount on Note receivable A= Face value of note × Bank discount rate × discount period=P…
Q: Daayata Department Store wishes to discount two notes receivable arising from the sale of…
A: Maturity value of Note A = 50000 as there is no interest. Maturity value of Note B = 50000 + 50000…
Q: Calculate maturity value for the interest-bearing note using ordinary interest: (Round your answer…
A: Given information : Face value = $42,000 Interest rate = 13% Time = 79 days
Q: Use the ordinary interest method, 360 days, to solve the following word problem. Round to the…
A: Given, Simple discount amount = $28,500 Discount rate = 13% Note was made for = 116 days
Q: An interest-bearing note for 118 days at 6.4% p.a. simple interest has a face value of $4053. If the…
A: Notes are issued to discount that is interest and number of days to maturity of note. Proceeds from…
Q: Cash is borrowed on a 2-month note payable. If the interest cost to borrow is RO 400, and the cash…
A: The calculation of actual interest rate on the note is shown hereunder : Interest cost RO 400 Cash…
Q: You were offered either a simple interest note or a simple discount note with the following terms:…
A: a. The computation of effective interest rate when offered simple interest note as follows: The…
Q: Michael Jacobson signed a simple discount note with a face value of $ 8,400 at a discount rate of…
A: Discount Note is short-term debt instrument which is issued to raise short term debt for period less…
Q: Kate Davidson signed a simple discount note for $9000 the discount rate is 5% and the term of the…
A: In finance, a simple discount note is a promissory note in which a borrower promises to repay the…
Q: 8. Mellisa received a 160-day promissory note and the note was discounted at a rate of 6%. The…
A: What is Promissory Note? A Promissory note is a financial instrument that contains a formed…
Q: The face value of a simple interest note and blank discount note is $8,000 each. Assume both notes…
A: The provided information are: Face value for both simple interest note and blank discount rate =…
Q: Calculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary…
A: Bank discount = face value × discount rate × number of years
Q: five year promissory note with a face value of $5000, bearing interest at 6% compounded…
A: To calculate amount to be paid for promissory note first of all we will calculate future price after…
Q: Calculate the bank discount and proceeds (in $) for the simple discount note. Use the ordinary…
A: Given: Face value = $85,000 Discount rate = 9.85% Term = 11 months or 330 days(11*30)
Q: A note with a face value of BD 2,600 will mature after 3 Years from today is sold to a bank that…
A: Given information is: Face value of Note = BD 2600 Period = 3 years Compound interest rate = 6% Bank…
Q: What does "2/10" mean, with respect to "credit terms of 2/10, n/30"? A. A discount of 2…
A: Given, credit terms = 2/10, n/30 n/30 indicates that the payment should be made within 30 days from…
A 90-day note promises to pay 6,500 plus simple interest of 6 3/4%. It is discounted at 5 4/5% simple discount 20 days before maturity. Find the maturity value of the note and the proceeds of the sale.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- A promissory note with a maturity value of $700 is sold at a discount rate of 8%, 45 days before maturity. Determine the discount and the proceeds.The face value of a simple interest note and bank discount note is $8,000each. Assume both notes have 8.75 percent interest rates for 60 days.Calculate the following:a. The amount of interest charged for each.b. The maturity value of the simple interest note.c. The maturity value of the bank discount note.d. The amount the borrower receives for the simple interest note.e. The amount the borrower receives for the bank discount note.A promissory note with a maturity value of 1300 matures in 60 days. The note is sold 23 days before the legal due date. How much money is it sold for if the discount rate is 5.5% simple interest?
- A 102-day note for $85 bears simple interest at 4.5% and is sold 22 days before maturity to a bank that uses a simple interest rate of 8%. What are the proceeds?If you sign a discount note for $9,500 at a bank discount rate of 9% for 3 months, what is the effective interest rate (as a %)?A promissory note is a written statement agreeing to pay a sum of money either on demand or at a definite future time. When a note is purchased for its present value at a given interest rate, the note is said to be discounted and the interest rate is called the discount rate. Suppose a $10,000 note due 7 years from now is sold to a financial institution for $5600. What is the nominal discount rate with quarterly compounding? The nominal rate is %. (Type an integer or decimal rounded to two decimal places as needed.)
- A 120-day, 10% interest-bearing note receivable is sold to a bank with recourseafter being held for 60 days. The proceeds are calculated using an 8% interest rate. In this situation,what happened to the notes receivable?A promissory note has a face value of 22275.00 and it has a date of issue of November 15 this year. The maturity date is April 15th. The rate of simple interest is 5.75%. What is the maturity value of the note?The face value of a simple discount note is $17,000. The discount is 4% for 160 days. Calculate the following.a. Amount of interest charged for each note. (Round your answer to the nearest cent.) Amount of interest b. Amount borrower would receive. (Round your answer to the nearest cent.) Amount receive c. Amount payee would receive at maturity. Amount receive at maturity d. Effective rate (Round your answer to the nearest tenth percent.) Effective rate %
- The interest charged on a $420000 note payable, at the rate of 6%, on a 60-day note would beThe face value of a simple interest note and blank discount note is $8,000 each. Assume both notes have 8.75 percent interest rates for 60 days. Calculate the following: The amount of interest charged for each?An interest-bearing note for 118 days at 6.4% p.a. simple interest has a face value of $4053. If the note is settled in 50 days at a discounted rate of 12.5% p.a., calculate the proceeds. Write your answer rounded to two decimal places. Answer: