chap11

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 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.)

Face value (principal)	Rate of interest	Length of note	Maturity value	Date of note	Date note discounted	Discount period	Bank discount	Proceeds
$27,200	9%	60 days	$	August 23	September 18	days	$	$

TABLE .1Exact days-in-a-year calendar (excluding leap year)* Day of Feb. Mar Apr. May June JulyAug. Sept.Oct. Dec. 335 336 337 month Jan 274 182 183 184 185 186 187 305 306 307 308 309 244 153 245 247 156 248 339 125 126 127 340 250 251 252 253 280 281 282 283 284 285 286 287 98 159 189 342 129 190 343 100 10I 102 162 345 346 347 132 193 194 195 196 197 198 199 255 104 134 135 257 258 259 260 73 165 227 320 321 322 323 324 325 326 327 75 289 350 351 352 353 354 355 356 357 358 359 107 137 168 229 290 262 263 264 265 266 267 268 269 50 170 292 79 232 293 202 234 295 296 297 235 205 206 207 237 329 238 299 209 240 332 362 180 272 363 302 303 243 365 Often referred to as a Jullan calendar