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.)Note: Do not round intermediate calculations. Round your final answers to the nearest cent.\begin{tabular}{|c|c|c|c|c|c|c|c|c|}\hline \begin{tabular}{l} Face value \\(principal)\end{tabular} & \begin{tabular}{l} Rate of \\interest\end{tabular} & \begin{tabular}{l} Length of \\note\end{tabular} & \begin{tabular}{l} Maturity \\value\end{tabular} & \begin{tabular}{c} Date of \\note\end{tabular} & \begin{tabular}{c} Date note \\discounted\end{tabular} & \begin{tabular}{c} Discount \\period\end{tabular} & Bank discount & Proceeds \\\hline 25,000 & 9% & 60 days & & June 8 & July 10 & & & \\\hline\end{tabular}
Q. 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.)Note: Do not round intermediate calculations. Round your final answers to the nearest cent.\begin{tabular}{|c|c|c|c|c|c|c|c|c|}\hline \begin{tabular}{l} Face value \\(principal)\end{tabular} & \begin{tabular}{l} Rate of \\interest\end{tabular} & \begin{tabular}{l} Length of \\note\end{tabular} & \begin{tabular}{l} Maturity \\value\end{tabular} & \begin{tabular}{c} Date of \\note\end{tabular} & \begin{tabular}{c} Date note \\discounted\end{tabular} & \begin{tabular}{c} Discount \\period\end{tabular} & Bank discount & Proceeds \\\hline 25,000 & 9% & 60 days & & June 8 & July 10 & & & \\\hline\end{tabular}
Calculate discount period: Calculate the discount period by finding the number of days between the date the note was discounted (July 10) and the maturity date (60 days after June 8).Discount period = Date note discounted - Date of note + Length of note= (July 10) - (June 8) + 60 days= 32 days + 60 days= 92 days
Calculate bank discount: Calculate the bank discount using the formula:Bank discount = Face value × Rate of interest × (Discount period / 360)= $25,000×9%×(92/360)= $25,000×0.09×(0.2556)= $575