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?
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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?
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- A customer takes out a loan of $130,000 on January 1, with a maturity date of 36 months, and an annual interest rate of 11%. If 6 months have passed since note establishment, what would be the recorded interest figure at that time? A. $7,150 B. $65,000 C. $14,300 D. $2,383A 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 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?
- A bank wishes to earn a 17% simple interest in discounting notes. If the term of the discount is 3 years and 9 months, what simple discount rate should be used?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 %)?
- What is the effective interest rate of a simple discount note for $27,500,at an ordinary bank discount rate of 10%, for 30 days? Assume that there are 360 days in a year. Question content area bottom The effective interest rate is ??? (Round to the nearest tenth as needed.)If you sign a discount note for $4,400 at a bank discount rate of 8%, for 90 days, what is the effective interest rate?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.
- What is the effective interest rate of a simple discount note for $31,200, at an ordinary bank discount rate of 14%, for 30 days? Assume that there are 360 days in a year. The effective interest rate is %. (Round to the nearest tenth as needed.) E 4A bank obtains an 8-month T-bill at a discount rate of 8%. What is the simple interest rate?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.