Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and effective rate (as a %) for the simple discount note. Round dollars to the nearest cent and round effective rate to the nearest hundredth of a percent. Face Value Discount Rate (%) Term (days) Bank Discount Proceeds Effective Rate (%) $6,905 10.49 74
Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and effective rate (as a %) for the simple discount note. Round dollars to the nearest cent and round effective rate to the nearest hundredth of a percent. Face Value Discount Rate (%) Term (days) Bank Discount Proceeds Effective Rate (%) $6,905 10.49 74
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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Using ordinary interest, 360 days, calculate the bank discount (in $), proceeds (in $), and effective rate (as a %) for the simple discount note. Round dollars to the nearest cent and round effective rate to the nearest hundredth of a percent.
| Face Value |
Discount Rate (%) |
Term (days) |
Bank Discount |
Proceeds | Effective Rate (%) |
|---|---|---|---|---|---|
| $6,905 | 10.49 | 74 |
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