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 nearest cent.) Face Interest Date of Value Rate (%) Note $350 12/1/2 June 8 Date of Discount Sept. 2 Term of Note (days) 135 Discount Period (days) Maturity Date -Select- Discount Rate (%) 15.5 $ $ Maturity Value (in $) Proceeds (in $)
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 nearest cent.) Face Interest Date of Value Rate (%) Note $350 12/1/2 June 8 Date of Discount Sept. 2 Term of Note (days) 135 Discount Period (days) Maturity Date -Select- Discount Rate (%) 15.5 $ $ Maturity Value (in $) Proceeds (in $)
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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![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.)
| Face Value | Interest Rate (%) | Date of Note | Term of Note (days) | Maturity Date | Maturity Value (in $) |
|------------|------------------|--------------|--------------------|----------------|---------------------|
| $350 | 12 ½ | June 8 | 135 | [Select] | $ [Blank] |
| Date of Discount | Discount Period (days) | Discount Rate (%) | Proceeds (in $) |
|------------------|------------------------|-------------------|-----------------|
| Sept. 2 | 15.5 | [Blank] | $ [Blank] |](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F92f0192f-f253-4930-b394-721f7ec35561%2F69d62728-d064-4d5f-a289-93e3e35e7e88%2Fl2h981_processed.jpeg&w=3840&q=75)
Transcribed Image Text: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.)
| Face Value | Interest Rate (%) | Date of Note | Term of Note (days) | Maturity Date | Maturity Value (in $) |
|------------|------------------|--------------|--------------------|----------------|---------------------|
| $350 | 12 ½ | June 8 | 135 | [Select] | $ [Blank] |
| Date of Discount | Discount Period (days) | Discount Rate (%) | Proceeds (in $) |
|------------------|------------------------|-------------------|-----------------|
| Sept. 2 | 15.5 | [Blank] | $ [Blank] |
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