Question

Find the maturity value of the simple interest note. The note is then discounted at 12%. Find the discount period, the discount, and the proceeds after discounting.

Date Loan Was Made Face Value Length of Loan Rate Maturity Value Date of Discount Discount Period Discount Proceeds
Feb. 7 $6200 90 days $10 12\frac{1}{2}%$ Apr. 1

Solution

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Answered 1 year ago
Answered 1 year ago
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Start by identifying the given values.

Date the loan was made == February 77

Face value =$6,200=\$6,200

Length of loan =90= 90 days

Interest Rate =1012%=10\frac{1}{2}\%

Date of discount == April 11

Discount rate =12%=12\%

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