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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.







Face value


(principal)







Rate of


interest







Length of


note







Maturity


value







Date of


note







Date note


discounted







Discount


period




Bank discount
Proceeds


25,000

9%
60 days

June 8
July 10

Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9% 9 \% . Use the ordinary interest method. (Use Days in a year table.)\newlineNote: Do not round intermediate calculations. Round your final answers to the nearest cent.\newline\begin{tabular}{|c|c|c|c|c|c|c|c|c|}\newline\hline \begin{tabular}{l} \newlineFace value \\\newline(principal)\newline\end{tabular} & \begin{tabular}{l} \newlineRate of \\\newlineinterest\newline\end{tabular} & \begin{tabular}{l} \newlineLength of \\\newlinenote\newline\end{tabular} & \begin{tabular}{l} \newlineMaturity \\\newlinevalue\newline\end{tabular} & \begin{tabular}{c} \newlineDate of \\\newlinenote\newline\end{tabular} & \begin{tabular}{c} \newlineDate note \\\newlinediscounted\newline\end{tabular} & \begin{tabular}{c} \newlineDiscount \\\newlineperiod\newline\end{tabular} & Bank discount & Proceeds \\\newline\hline 2525,000000 & 9% 9 \% & 6060 days & & June 88 & July 1010 & & & \\\newline\hline\newline\end{tabular}

Full solution

Q. Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9% 9 \% . Use the ordinary interest method. (Use Days in a year table.)\newlineNote: Do not round intermediate calculations. Round your final answers to the nearest cent.\newline\begin{tabular}{|c|c|c|c|c|c|c|c|c|}\newline\hline \begin{tabular}{l} \newlineFace value \\\newline(principal)\newline\end{tabular} & \begin{tabular}{l} \newlineRate of \\\newlineinterest\newline\end{tabular} & \begin{tabular}{l} \newlineLength of \\\newlinenote\newline\end{tabular} & \begin{tabular}{l} \newlineMaturity \\\newlinevalue\newline\end{tabular} & \begin{tabular}{c} \newlineDate of \\\newlinenote\newline\end{tabular} & \begin{tabular}{c} \newlineDate note \\\newlinediscounted\newline\end{tabular} & \begin{tabular}{c} \newlineDiscount \\\newlineperiod\newline\end{tabular} & Bank discount & Proceeds \\\newline\hline 2525,000000 & 9% 9 \% & 6060 days & & June 88 & July 1010 & & & \\\newline\hline\newline\end{tabular}
  1. Calculate discount period: Calculate the discount period by finding the number of days between the date the note was discounted (July 1010) and the maturity date (6060 days after June 88).\newlineDiscount period = Date note discounted - Date of note + Length of note\newline= (July 1010) - (June 88) + 6060 days\newline= 3232 days + 6060 days\newline= 9292 days
  2. Calculate bank discount: Calculate the bank discount using the formula:\newlineBank discount = Face value ×\times Rate of interest ×\times (Discount period / 360360)\newline= $25,000×9%×(92/360)\$25,000 \times 9\% \times (92 / 360)\newline= $25,000×0.09×(0.2556)\$25,000 \times 0.09 \times (0.2556)\newline= $575\$575

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