Question: Chapter 5 Discount Notes, APR Use: B = MDT, MV = Proceeds/1-DT Karim Darmati holds a note of $7,000 that has a discount rate of

Chapter 5 Discount Notes, APR Use: B = MDT, MV = Proceeds/1-DT

Karim Darmati holds a note of $7,000 that has a discount rate of 14%. The note was made on March 8and is due October 19. Karim sells the note to First City Bank on July 16 at a discount rate of 10%. Find the proceeds to Karim.

Be sure to change the date worksheet to a 360-day year before calculating number of days. Round your answer to the nearest whole dollar.

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