# Question

The face values of a simple interest note and bank discount note are $8,000 each. Assume both notes have 8.75 percent interest rates for 60 days. Calculate the following:

a. The amount of interest charged for each.

b. The maturity value of the simple interest note.

c. The maturity value of the bank discount note.

d. The amount the borrower receives for the simple interest note.

e. The amount the borrower receives for the bank discount note.

a. The amount of interest charged for each.

b. The maturity value of the simple interest note.

c. The maturity value of the bank discount note.

d. The amount the borrower receives for the simple interest note.

e. The amount the borrower receives for the bank discount note.

## Answer to relevant Questions

You deposit $760 in an account one time that compounds monthly at 2 percent. How much will you have in your account at the end of ten years? Describe situations in which you have an integration of future lump sums and streams of equal and unequal payments. Congratulations! You have just won a $40 million lottery and have elected to receive $2 million per year for 20 years. Assume that a 4 percent interest rate is used to evaluate the annuity and that you receive each payment ...What distinguishes a capital investment from other investments? List the advantages and disadvantages of the payback method.Post your question

0