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PART B:

PART C:

PART D:

You are the owner of four Taco Bell restaurant locations. You have a business loan with Citizens Bank taken out 60 days ago that is due in 90 days. The amount of the loan is $50,000, and the rate is 9.5% using ordinary interest. You currently have some excess cash: $35,000. Due to situations beyond your control, you, as the owner, must make an immediate business decision now to pursue only one of these two choices: 1) sending all of the $35,000 to Citizens Bank as a partial payment on your loan, or 2) using the $35,000 to purchase serving supplies such as food containers, cups, and plastic dinnerware for your inventory. This is the last day to take advantage of the opportunity to save some money due to a special discount price that is "10% off" the normal cost of $35,000 for these items. Consider these calculations: (a) How much interest in $) will you save on this loan if you make the partial payment and don't purchase the additional serving supplies? (Round your answer to two decimal places.) $ 831.25 x (b) How much money in $) will you save if you purchase the serving supplies with the discount and don't make a partial payment on the loan? (Round your answer to two decimal places.) $ 3500 (c) How much (in $) will you save by purchasing the discounted serving supplies rather than making the partial payment? (Hint: Find the difference between the savings on the supplies found in part (b) and the savings on the loan interest found in part (a). Round your answer to two decimal places.) 2668.75 X (d) What other factors should you consider before making this decision? So if we purchase the processing material rather than the partial payment of the loan then we can earn more profit in the business and there is a chance to clear the loan before due date Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and effective rate (as a %) for the simple discount note. Round dollars to the nearest cent and round effective rate to the nearest hundredth of a percent. Face Value Discount Rate (%) Term (days) Bank Discount Proceeds Effective Rate (%) $6,805 10.19 77 $ 148 x $ 6657 x 10.98% X % The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.) Face Value Interest Rate (%) Date of Note Term of Note (days) Maturity Date Maturity Value (in $) $750 14 14.3 June 6 135 ---Select--- Date of Discount Discount Period (days) Discount Rate (%) Proceeds (in $) Sept. 5 17.5 Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $28,500 simple discount promissory note at a certain bank. The discount rate was 13%, and the note was made on February 12 (not in a leap-year) for 115 days. (a) What proceeds (in $) will Roni receive on the note? $ 1183.5 x (b) What is the maturity date of the note? June 6 x