Tri State Bank was the payee of a $60,000 note dated August 16. The note was made for 120 days and was discounted a 10%. On November 14, the note was rediscounted at New Hope Bank at 9%. a. How much did Tri State Bank loan to the maker of the note? b. How much had Tri State receive when it rediscounted the note? c. How much did Tri State make on the transaction? d. How much less interest was this than Tri State would have earned had it kept with note to maturity?

Tri State Bank was the payee of a $60,000 note dated August 16. The note was made for 120 days and was discounted a 10%. On November 14, the note was rediscounted at New Hope Bank at 9%. a. How much did Tri State Bank loan to the maker of the note? b. How much had Tri State receive when it rediscounted the note? c. How much did Tri State make on the transaction? d. How much less interest was this than Tri State would have earned had it kept with note to maturity?

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter17: Accounting For Notes And Interest

Section: Chapter Questions

Problem 3CE

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