SIMPLE INTEREST AND SIMPLE DISCOUNT 3.96 Find the proceds when each of the following note is diacomunte Interest Date of Discount Rate Discount 11% Face Date Rate Term (a) S2000 Sept. 1 60 days (6) $5000 Apr. 21 3months (c) $800 Mar. 20 6 months (d) $3000 Feb. 4 240 days Oct. 1 June 11 July May 12 9 % 16% 13 % 6% Ans. () $2020.55; (b) $5107.56: (e) $777.92; () $2857 until maturity. Aris.(a) 9.57%; (b) 16.29%; (c) 13.62%; ( assuming he was the original payee of the note. Ans of simple interest earned by the purchaser if he holds the note d) 12.60% 3.88 Yn Problem 3.86 (aand (b), find 3.89 On April 21, a retailer buys goods at his bank, which discounts notes the rate of simple interest earned by the seller of the note o . (a) 12.33%; (b) 15.18% cash discount, he signs a 90-day noninterest-bearing note at a discount rate of 9%. what should the face value of this to advantage of os amounting to $5000. If he pays cash he will get a 4% cash rate o to pay note be to give him the exact ount needed to pay cash for the goods. Ans. $4910.49 interest-bearing 3.90 Mr. Rose owes Mr. Chen $1000. Mr. Chen agrees woe can be immediately discounted at a local bank which charges a hat should the face of the note be so that Mr. Chen will receive $1000 to accept as payment a non discount rate of 10%, as proceeds? Ans. $1025.64 A 90 face o a 12% ie for S800 bears interest at 10%. It is sold 60 days before maturity to a bank that for discounting notes. What are the proceeds? Ans. $803.92 SIMPLE INTEREST AND SIMPLE DISCOUNT 3.96 Find the proceds when each of the following note is diacomunte Interest Date of Discount Rate Discount 11% Face Date Rate Term (a) S2000 Sept. 1 60 days (6) $5000 Apr. 21 3months (c) $800 Mar. 20 6 months (d) $3000 Feb. 4 240 days Oct. 1 June 11 July May 12 9 % 16% 13 % 6% Ans. () $2020.55; (b) $5107.56: (e) $777.92; () $2857 until maturity. Aris.(a) 9.57%; (b) 16.29%; (c) 13.62%; ( assuming he was the original payee of the note. Ans of simple interest earned by the purchaser if he holds the note d) 12.60% 3.88 Yn Problem 3.86 (aand (b), find 3.89 On April 21, a retailer buys goods at his bank, which discounts notes the rate of simple interest earned by the seller of the note o . (a) 12.33%; (b) 15.18% cash discount, he signs a 90-day noninterest-bearing note at a discount rate of 9%. what should the face value of this to advantage of os amounting to $5000. If he pays cash he will get a 4% cash rate o to pay note be to give him the exact ount needed to pay cash for the goods. Ans. $4910.49 interest-bearing 3.90 Mr. Rose owes Mr. Chen $1000. Mr. Chen agrees woe can be immediately discounted at a local bank which charges a hat should the face of the note be so that Mr. Chen will receive $1000 to accept as payment a non discount rate of 10%, as proceeds? Ans. $1025.64 A 90 face o a 12% ie for S800 bears interest at 10%. It is sold 60 days before maturity to a bank that for discounting notes. What are the proceeds? Ans. $803.92
