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Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $50,000 6 months Part 2: Central Auto Parts borrowed $450,000 at 9% interest on July 6 for 120 days. (a) If the bank uses the ordinary interest method, what is the amount (in $) of interest on the loan? $ 13,315.06 (b) What is the maturity date? November Part 3: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 48 months. What are the proceeds (in $)? $

Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $50,000 6 months Part 2: Central Auto Parts borrowed $450,000 at 9% interest on July 6 for 120 days. (a) If the bank uses the ordinary interest method, what is the amount (in $) of interest on the loan? $ 13,315.06 (b) What is the maturity date? November Part 3: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 48 months. What are the proceeds (in $)? $

Essentials Of Investments
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
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Part 1: Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $50,000 6 months $ Part 2: Central Auto Parts borrowed $450,000 at 9% interest on July 6 for 120 days. (a) If the bank uses the ordinary interest method, what is the amount (in $) of interest on the loan? $ 13,315.06 (b) What is the maturity date? November e V 6 Part 3: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 48 months. What are the proceeds (in $)? Part 4: If you sign a discount note for $7,500 at a bank discount rate of 9% for 9 months, what is the effective interest rate (as a %)? Round to the nearest tenth percent. % Part 5: The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.) Maturity Value Face Interest Maturity Date of Note Term of Value Rate (%) Note (days) Date (in $) $1,250 7.1 Sept. 19 130 ---Select- e 24 Proceeds (in $) Date of Discount Discount Discount Period (days) Rate (%) Dec. 12 11.2 Part 6: If you purchase $22,000 in U.S. Treasury Bills with a discount rate of 4.5% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent. %
Transcribed Image Text:Part 1: Find the amount (in $) of interest on the loan. Principal Rate (%) Time Interest $50,000 6 months $ Part 2: Central Auto Parts borrowed $450,000 at 9% interest on July 6 for 120 days. (a) If the bank uses the ordinary interest method, what is the amount (in $) of interest on the loan? $ 13,315.06 (b) What is the maturity date? November e V 6 Part 3: You sign a simple discount promissory note for $7,000 at a discount rate of 7%, for 48 months. What are the proceeds (in $)? Part 4: If you sign a discount note for $7,500 at a bank discount rate of 9% for 9 months, what is the effective interest rate (as a %)? Round to the nearest tenth percent. % Part 5: The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate the missing information. (Round dollars to the nearest cent.) Maturity Value Face Interest Maturity Date of Note Term of Value Rate (%) Note (days) Date (in $) $1,250 7.1 Sept. 19 130 ---Select- e 24 Proceeds (in $) Date of Discount Discount Discount Period (days) Rate (%) Dec. 12 11.2 Part 6: If you purchase $22,000 in U.S. Treasury Bills with a discount rate of 4.5% for a period of 26 weeks, what is the effective interest rate (as a %)? Round to the nearest hundredth percent. %
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