Discounting a Note 1.) Face Value (principle) Ordinary Interest 50,000.00 Rate of interest 11% Length of note Rate of interest 95 days 0 1 Question: Calculate the Maturity Value, Discount Period, and the Proceeds 12 13 9% 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 2.) 31 32 33 Face Value (principle) 34 Ordinary Interest 35 25,000.00 36 37 38 39 Question: Calculate the Maturity Value, Discount Period, and the Proceeds. 40 Maturity value Length of note 60 days Maturity value Date of note 10-Jun Date of note 08-Jun Date of discount 18-Jul Date of discount 10-Jul Discount Period Discount Period Bank discount Bank discount 9% 9% Proceeds Proceeds

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