Toppen1. Marina signed a simple discount note on September 1. The discount rate on the note is 4.7% and has a maturity date of December 31, if the proceeds of the note are $12,000, find the face value. (Use thebanker's method which uses 360 days in a year)O$12,581.00$12,192.61$11,987.91O$12,975.08

In a simple discount loan, the interest is already deducted from the loan and at maturity the par…

Answered: Marina signed a simple discount note on…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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You decide to discount a$5250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. What are the proceeds?
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $27,500 simple discount promissory note at a certain bank. The discount rate was 16%, and the note was made on February 15 (not in a leap-year) for 119 days. (a) What proceeds (in $) will Roni receive on the note? $ 23100
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Marina signed a simple discount note on September 1. The discount rate o banker's method which uses 300 days i O$12,581.09 O $12,192.61 $11,987.91 O$12,975.08 and has a maturity date of December 31, if the proceeds of the note are $12,000, find the face value the