Promissory Notes, Simple Discount Notes, and the Discount Process 4. Andre Fox borrowed $15,000 on a non-interest-bearing, simple discount, 7 1/2% 90-day note. Assume ordinary interest. What is (a) maturity value, (b) the bank's discount, (c) Andre's proceeds, and (d) the effective rate to nearest hundredth percent?

7. Agnes Abanilla was granted a loan of $20,000 by her employer CPM Industrial Fabricator and Construction Corporation with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for $20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note. 8. On May 12, Scott Rinse accepted an $8,000, 12%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 10%. What proceeds does Scott receive? 9. Calculate the discount period for the bank to wait to receive its money: Date of note Length of note Date note discounted Discount period (a)April 12 45 days May 2 ? (b) March 7 120 days June 8 ? 10. Tina Mier must pay a $2,000 furniture bill. A finance company will loan Tina $2,000 for 8 months at a 9% discount rate.The finance company told Tina that if she wants to receive exactly $2,000, she must borrow more than $2,000. The finance company gave Tina the following formula: What to ask for = Amount in cash to be received 1 (Discount X Time of Loan) Calculate Tinas loan request and the effective rate of interest to the nearest hundredth percent.