Simple Discount Formula: B = MDT Date worksheet; set to 360-day year Maturity Value = Proceeds 1 - DT On April 10, Karim Darmati accepted a note for $10,000 with 9% simple interest, due on December 6. Assume a 360-day year. Karim needed cash and took the note to First City Bank, which agreed to buy the note at a discount of 12.5%. The transaction was made on July 7. How much did Karim receive for the note?
Simple Discount Formula: B = MDT Date worksheet; set to 360-day year Maturity Value = Proceeds 1 - DT On April 10, Karim Darmati accepted a note for $10,000 with 9% simple interest, due on December 6. Assume a 360-day year. Karim needed cash and took the note to First City Bank, which agreed to buy the note at a discount of 12.5%. The transaction was made on July 7. How much did Karim receive for the note?
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
Problem 1PS
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Simple Discount Formula: B = MDT
Date worksheet; set to 360-day year
Maturity Value = Proceeds
1 - DT
On April 10, Karim Darmati accepted a note for $10,000 with 9% simple interest, due on December 6. Assume a 360-day year. Karim needed cash and took the note to First City Bank, which agreed to buy the note at a discount of 12.5%. The transaction was made on July 7. How much did Karim receive for the note?
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