PART 1. SIMPLE INTEREST, SIMPLE DISCOUNT, PROMISSORY NOTE. a. What is the principal invested from June 10, 2020 which will amount to 50,000 on October 20, 2021 using 14.8% simple interest? b. Find the simple discount on 12,000 due at the end of 1 year and 6 months with 7.5% simple discount rate. How much is the proceeds? c. Five J’s company received a 100,00 promissory note at 10% simple interest for 9 months from one of its customers. After 6 months, the note was discounted at a bank at a discount rate 7.8%. How much did the company receive from the discounted note?
PART 1. SIMPLE INTEREST, SIMPLE DISCOUNT, PROMISSORY NOTE. a. What is the principal invested from June 10, 2020 which will amount to 50,000 on October 20, 2021 using 14.8% simple interest? b. Find the simple discount on 12,000 due at the end of 1 year and 6 months with 7.5% simple discount rate. How much is the proceeds? c. Five J’s company received a 100,00 promissory note at 10% simple interest for 9 months from one of its customers. After 6 months, the note was discounted at a bank at a discount rate 7.8%. How much did the company receive from the discounted note?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PART 1. SIMPLE INTEREST, SIMPLE DISCOUNT, PROMISSORY NOTE.
a. What is the principal invested from June 10, 2020 which will amount to 50,000 on October 20, 2021 using 14.8% simple interest?
b. Find the simple discount on 12,000 due at the end of 1 year and 6 months with 7.5% simple discount rate. How much is the proceeds?
c. Five J’s company received a 100,00 promissory note at 10% simple interest for 9 months from one of its customers. After 6 months, the note was discounted at a bank at a discount rate 7.8%. How much did the company receive from the discounted note?
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