1. Juan-Solez, a prominent painter, takes out a simple discount note for one year tram River National Bank for $5,000. The annual rate of interest is 8%. What is the amount of:

A. Bank discount

B. Proceeds

C. Effective rate of interest (to nearest tenth percent)

2. Mobilee Oil Company accepted a $10.000, 120-day note dated March 3 at WA% to settle a past-due account receivable. Mobilee Oil discounted the note to raise cash on May 10, at a discounted rate of 9%. What proceeds did Mobilee Oil receive?

Answer rating: 100% (QA)

1 In case of a discounted note lets say of 100 bank deducts its Interest 10 10 immediately and pays ... View the full answer