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1) A 7%, 60-day note is discounted 15 days before the maturity date. If the discount...

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Finance

1) A 7%, 60-day note is discounted 15 days before the maturitydate. If the discount rate is 5.5% and the proceeds received areRM997.77, find:
a) The amount of discount charged.
b) The discount date, if the maturity date of the note is 26October 2018.
c) The face value of the note.
2) A 6%, 110-day note dated 31 August 2018 has a maturityvalue of RM4,073.33. On 12 October 2018, the note is discounted andthe proceeds received are RM4,019.47. Find:
a) The face value of the note.
b) The bank discount rate that is charged when the note isdiscounted.

Answer & Explanation Solved by verified expert
3.8 Ratings (386 Votes)
Answer 1 A 7 60day note is discounted 15 days before the maturity date If the discount rate is 55 and the proceeds received are RM 99777 Maturity Value 99777 Rate of Discount 55 Time 60 days Rate of Interest 7 MATURITY VALUE PRINCIPAL1 RATE TIME Principal Maturity Value 1 RATE TIME 99777 1055 45360    See Answer
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