Calculate the discount period for the bank to wait to receive its money: (Use Days in a
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Calculate the discount period for the bank to wait to receive its money: (Use Days in a year table):
| Date of note | Length of note | Date note discounted | Discount period |
| May 15 | 50 days | June 6 | days |
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 8%. Use the ordinary interest method. (Use the Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
| Face value (principal) | Rate of interest | Length of note | Maturity value | Date of note | Date note discounted | Discount period | Bank discount | Proceeds | |||||||||||||||||||||||||||
| $52,200 | 12% | 95 days | $ | March 18 | April 9 | days | $ | $ | |||||||||||||||||||||||||||
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9%. Use the ordinary interest method. (Use Days in a year table.) (Do not round intermediate calculations. Round your final answers to the nearest cent.)
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Expert Answer:
Answer Maturity Value The maturity value is the amount of money the bank will receive when the note matures In the first example the face value of the ... View the full answer
Related Book For 
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
