Answered: A 62-day note for $115 bears interest…

A 62-day note for $115 bears interest at 5.75% and is sold 26 days before the due date to a bank that discounts notes using a simple interest rate of 7.5%. What are the proceeds?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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7. A 62-day note for $115 bears interest at 5.75% and is sold 26 days before the due date to a bank that discounts notes using a simple interest rate of 7.5%. What are the proceeds?

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