Calculate the bank discount and proceeds for the following simple discount notes. Usethe ordinary interest method, 360 days, when applicable.Face Value Discount Rate (%) Term Bank Discount Proceeds$4,500 13 6 months $292.50 $4,207.50

Calculate the bank discount and proceeds for the following simple discount notes. Usethe ordinary interest method, 360 days, when applicable.Face Value Discount Rate (%) Term Bank Discount Proceeds$4,500 13 6 months $292.50 $4,207.50

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter16: Working Capital Policy And Short-term Financing

Section: Chapter Questions

Problem 16P

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Question

Calculate the bank discount and proceeds for the following simple discount notes. Use
the ordinary interest method, 360 days, when applicable.
Face Value Discount Rate (%) Term Bank Discount Proceeds
$4,500 13 6 months $292.50 $4,207.50

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