Question
1. Juan-Solez, a prominent painter, takes out a simple discount note for one year tram River National Bank for $5,000. The annual rate of interest
1. Juan-Solez, a prominent painter, takes out a simple discount note for one year tram River National Bank for $5,000. The annual rate of interest is 8%. What is the amount of:
A. Bank discount
B. Proceeds
C. Effective rate of interest (to nearest tenth percent)
2. Mobilee Oil Company accepted a $10.000, 120-day note dated March 3 at WA% to settle a past-due account receivable. Mobilee Oil discounted the note to raise cash on May 10, at a discounted rate of 9%. What proceeds did Mobilee Oil receive?Step by Step Solution
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1 In case of a discounted note lets say of 100 bank deducts its Interest 10 10 immediately and pays ...
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
