A bank discount 120 day note with a face value of P7,000 comes due on June...
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A bank discount 120 day note with a face value of P7,000 comes due on June 1st. The owner of the note holds it for only 20 days before having it discounted at a bank which discounts at a rate of 11 %. What amount does the owner get from the bank after 20 days? 14. On January 10th a bank sold a P100,000 certificate of deposit to mature on March 10th and bear interest at 5%. If the buyer holds this certificate of deposit until its maturity date - how much do they receive on March 10th? 15. Jose agrees to pay P2,000 in one year at an interest rate of 12%. The bank subtracts the discount of 12% of P2,000, and gives the rest to Jose. Find the amount of the discount and the proceeds to Jose. A bank discount 120 day note with a face value of P7,000 comes due on June 1st. The owner of the note holds it for only 20 days before having it discounted at a bank which discounts at a rate of 11 %. What amount does the owner get from the bank after 20 days? 14. On January 10th a bank sold a P100,000 certificate of deposit to mature on March 10th and bear interest at 5%. If the buyer holds this certificate of deposit until its maturity date - how much do they receive on March 10th? 15. Jose agrees to pay P2,000 in one year at an interest rate of 12%. The bank subtracts the discount of 12% of P2,000, and gives the rest to Jose. Find the amount of the discount and the proceeds to Jose.
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Problem 13 To solve this problem we need to calculate the bank discount on the note for 120 days first The bank discount is calculated using the formu... View the full answer
Related Book For
Financial and Managerial Accounting
ISBN: 978-0132497978
3rd Edition
Authors: Horngren, Harrison, Oliver
Posted Date:
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