Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. Note 1 2 3 4 5 6 Note Face Value Date of Note 3/31/2024 80,000 3/31/2024 80,000 3/31/2024 120,000 6/30/2024 6/30/2024 120,000 120,000 6/30/2024 $ 80,000 Date Discounted 6% 6/30/2024 6% 9/30/2024 6% 9/30/2024 6% 10/31/2024 6% 10/31/2024 6% 11/30/2024 Interest Rate Discount Rate 8% 8% 10% 8% 10% 8% Proceeds Received
Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds received from the bank on discounting the note. Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar. Note 1 2 3 4 5 6 Note Face Value Date of Note 3/31/2024 80,000 3/31/2024 80,000 3/31/2024 120,000 6/30/2024 6/30/2024 120,000 120,000 6/30/2024 $ 80,000 Date Discounted 6% 6/30/2024 6% 9/30/2024 6% 9/30/2024 6% 10/31/2024 6% 10/31/2024 6% 11/30/2024 Interest Rate Discount Rate 8% 8% 10% 8% 10% 8% Proceeds Received
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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Transcribed Image Text:Descriptors are provided below for six situations involving notes receivable being discounted at a bank. In each case, the maturity
date of the note is December 31, 2024, and the principal and interest are due at maturity. For each situation, determine the proceeds
received from the bank on discounting the note.
Note: Do not round Intermediate calculations. Round your final answers to the nearest whole dollar.
Note
1
2
3
4
5
6
Note Face
Value
$
Date of Note
80,000
3/31/2024
3/31/2024
80,000
3/31/2024
80,000
120,000 6/30/2024
120,000 6/30/2024
120,000 6/30/2024
Interest
Rate
Date
Discounted
6%
6/30/2024
6% 9/30/2024
6% 9/30/2024
6% 10/31/2024
6% 10/31/2024
0%
11/30/2024
Discount
Rate
8%
8%
10%
8%
10%
8%
Proceeds
Received
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