Using ordinary interest, calculate the missing information for the following simple discount notes.Date ofBankMaturityDateNoteDiscountAug. 14FaceValue20.$50,00021. $875,000DiscountRate (%)139/2/2Apr. 5Oct. 25Term (days)87Proceeds

Ordinary is a method in which the interest is calculated assuming there is 360 days in a year.…

Answered: Using ordinary interest, calculate the…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Complete the following table for the simple discount notes. Use the ordinary interest method. (Round your answers to the nearest cent.) amount due of maturity discount rate time bank discount proceeds 3200 6.25% 125 days ? ?
In credit terms of 3/15, n/45, the "3" represents the Oa. number of days in the discount period Ob. number of days when the entire amount is due Oc. percent of the cash discount )d. full amount of the invoice
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) FaceValue DiscountRate (%) Date ofNote Term(days) MaturityDate Bank Discount(in $) Proceeds(in $) $71,000 5 May 3 51 $ $
In credit terms of 2/10, n/30 the "2" represents the O A. Number of days in the discount period O B. Full amount of the invoice C. Number of days when the entire amount is due O D. Percent of the cash discount
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Date of Term Maturity Bank Discount Proceeds Value Rate (%) Note (days) Date (in $) (in $) $700 12.5 Sept. 6 107 -Select--- $ Need Help? Read It
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Date of Term Maturity Bank Discount Proceeds Value Rate (%) Note (days) Date (in $) (in $) $700 12.5 Sept. 6 107 December 23 $ 27 $ 774 Need Help? Read It
In the credit terms of 3/15, n/45, the "3" represents the a. Number of days when the entire amount is due b. Full amount of the invoice c. Percent of the cash discount d. Number of days in the discount period
Using ordinary interest, 360 days, calculate the missing information for the simple discount note. (Round dollars to the nearest cent.) Face Discount Date of Term Maturity Bank Discount Proceeds Value Rate (%) Note (days) Date (in $) (in $) $400 12.8 Sept. 8 106 ---Select--- $ $
Problem: (Computing the Proceeds from Discounted Notes) Determine the proceeds from each of the following discounted customer notes: a. An P8,000, 60-day, non-interest-bearing note discounted after 15 days at 12% b. A P12,000, 12% 60 day note discounted after 30 days at 14% c. A P6,000, 10% 90-day note discounted after 30 days at 12% d. A P10,000, 12% 120-day note discounted after 45 days at 15%. Please answer the questions above with correct solution and answer. Thank you.
Problem: (Computing the Proceeds from Discounted Notes) Determine the proceeds from each of the following discounted customer notes: 1. An P8,000, 60-day, non-interest-bearing note discounted after 15 days at 12% 2. A P12,000, 12% 60 day note discounted after 30 days at 14% 3. A P6,000, 10% 90-day note discounted after 30 days at 12% 4. A P10,000, 12% 120-day note discounted after 45 days at 15%.
In the credit terms 1/10, n/30, what does the "1" represent? Group of answer choices number of days when the entire amount is due number of days in the discount period full amount of the invoice 1% cash discount if paid within the credit period
If a credit card you are interested in has an APR of 16%, what would the Daily Periodic Rate (DPR) be? (express your answer as a percent and as a decimal) O.0438% = .000438 O 000438% = .0438 O.16% = .0016 O 1.33% = 1.33

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Using ordinary interest, calculate the missing information for the following simple discount notes. Bank Date of Note Maturity Date Discount Aug. 14 Face Value 20. $50,000 21. $875,000 Discount Rate (%) 13 9/2/2 Apr. 5 Oct. 25 Term (days) 87 Proceeds