1. The note has a face value of 12,500; dated April 12, 2013 that has to be paid after 5 months. The notes has an interest of 5% but discounted at a rate of 7%, 45 days after April 3, 2013. How much is the proceeds.
1. The note has a face value of 12,500; dated April 12, 2013 that has to be paid after 5 months. The notes has an interest of 5% but discounted at a rate of 7%, 45 days after April 3, 2013. How much is the proceeds.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:1. The note has a face value of 12,500; dated April 12, 2013 that has to be paid after 5
months. The notes has an interest of 5% but discounted at a rate of 7%, 45 days after
April 3, 2013. How much is the proceeds.
2. Find the face value of a 90 day note if it has an interest rate of 12% and was
discounted 35 days after signing. The note has a discount rate of 7% and has a proceed
of 9,000.
3. A 12,700, 150-day note was sign on March 27, 2019 at a discount rate of 7%. The
note was discounted 40 days before the maturity date. Find the interest rate if the note
has a proceed of 13,500.
4. How much time is needed for money to triple if invested at 9% compounded
bimonthly?
5. Accumulate 18,700 at 0.25% simple discount for 2years and 5 months.
6. A man buys a dining set with an offer option for paying 13,600 cash or 17,000 at the
end of 120 days. At what rate is he paying simple interest if he pays after 120 days?
7. At what simple interest rate will an amount of money gain 50% of the principal in 4
years.
8. An investment earns 11 3/8% compounded monthly. Find the value of an initial
investment of 5,000 after 6 years and 9 months.
9. Miguel purchased an antique statue of $450. 10 years later, he sold this statue for
$750. If the statue is viewed as an investment, what annual rate did he earn?
10.How long will an amount of money triple at a simple interest rate of 1% per annum?
11.Prince borrowed 20,760 at 3 %% simple interest on July 13, 2018. The loan is payable
on March 16, 2019. Find the exact and ordinary interest.
12. Lee earns 5,000 by selling Prince Jordan's car to his friends. If he plans to invest his
earnings, how long would it take to accumulate 12,500. If it has an interest rate of
0.015% compounded bimonthly.
13. BDO approved the loan of Patrick worth 150,000 at 18% interest for 15 years. Three
years before the maturity, BD0 Bank discounted it at 20%. Determine the proceeds of
the transaction.
14. Mika has a 120-day note for 7,500 at 2.18% simple interest. The note discounted
immediately at 0.75%. Find the proceeds.
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