Using ordinary interest, calculate the missing information for the following simple discount note: Face Value Discount rate (%) Date of Note Term (days) Maturity Date Bank Discount Proceeds $60,500 11.5 March 2nd 150
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Using ordinary interest, calculate the missing information for the following simple discount note:
| Face Value | Discount rate (%) | Date of Note | Term (days) | Maturity Date | Bank Discount | Proceeds |
| $60,500 | 11.5 | March 2nd | 150 |
We are given that the date of note is Mar 2 and the term is 150 days.
From maturity date:
2nd to 31st March - 29 days
1st to 30th April-30 days
1st to 31st May-31 days
1st to 30th June=30 days
1st to 30th July=30 days
We now have . Therefore, by adding 150 days to Mar 2, we get the maturity date to be July 30.
Hence, the required maturity date is July 30.
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