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Rex Corporation accepted a $8,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 7%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Answer is complete but not entirely correct. Maturity value b. What is the discount period? C. What is the bank discount? D. What proceeds does Rex receive?

Rex Corporation accepted a $8,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 7%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Answer is complete but not entirely correct. Maturity value b. What is the discount period? C. What is the bank discount? D. What proceeds does Rex receive?

FINANCIAL ACCOUNTING
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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Rex Corporation accepted a $8,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 7%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Answer is complete but not entirely correct. Maturity value b. What is the discount period? C. What is the bank discount? D. What proceeds does Rex receive?
Transcribed Image Text:Rex Corporation accepted a $8,000, 6%, 120-day note dated August 8 from Regis Company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 7%. (Use Days in a year table.) a. What is the note's maturity value? Note: Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent. Answer is complete but not entirely correct. Maturity value b. What is the discount period? C. What is the bank discount? D. What proceeds does Rex receive?
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