The followinginterest-bearing.promissory note wasdiscounted at a bank by the payee before maturity.Use the ordinary interest method, 360 days, tocalculate the missing information. (Round dollars tothe nearest cent.).Face Value: $1,280Interest Rate : 7.7Date of Note: Sept 18Term of Note (days) : 130Maturity Date : ?Maturity Value (in $) $?Date of Discount : Dec 11Discount Period (days) : ?Discount Rate (%) : 11.2Proceeds (in $): $?If you purchase $28,000 in U.S.Treasury Bills with a discount rate of4.9% for a period of 26 weeks, whatis the effective interest rate (as a%)? Round to the nearest hundredthpercent.

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The following interest-bearing_promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.). Face Value: $1,280 Interest Rate : 7.7

The following interest-bearing_promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.). Face Value: $1,280 Interest Rate : 7.7

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

The following
interest-bearing.promissory note was
discounted at a bank by the payee before maturity.
Use the ordinary interest method, 360 days, to
calculate the missing information. (Round dollars to
the nearest cent.).
Face Value: $1,280
Interest Rate : 7.7
Date of Note: Sept 18
Term of Note (days) : 130
Maturity Date : ?
Maturity Value (in $) $?
Date of Discount : Dec 11
Discount Period (days) : ?
Discount Rate (%) : 11.2
Proceeds (in $): $?
If you purchase $28,000 in U.S.
Treasury Bills with a discount rate of
4.9% for a period of 26 weeks, what
is the effective interest rate (as a
%)? Round to the nearest hundredth
percent.

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