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Business Math Homework 11
On Aug. 10,
Sheffield Company discounted at
Sunshine Bank a $9,375 (maturity value), 129-day note dated May 5.
Sunshine's discount rate was 9%. (Use Days in a year table.) What proceeds did Sheffield Company receive? (Use 360 days a year. Do not round intermediate calculations.) Proceeds received $9300. Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $20,470 at 10% for 1 years. Use ordinary interest as needed. a. Calculate the simple interest note proceeds. b. Calculate the simple discount note proceeds. a. Simple interest note proceeds $20,470. b. Simple discount note proceeds $18,423. Rex Corporation accepted a $10,500, 4%, 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 5%. (Use Days in a year table.) a. What is the note's maturity value? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) b. What is the discount period? c. What is the bank discount? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) d. What proceeds does Rex receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) a. Maturity value $10,640 b. Discount period: 56 days c. Bank discount $82.76 d. Proceeds received $10,557.24 Ron Prentice bought goods from Shelly Katz. On May 10, Shelly gave Ron a time extension on his bill by accepting a $4,600, 6%, 180-day note. On Aug. 15, Shelly discounted the note at Roseville Bank at 7%. (Use Days in a year table.) What proceeds does Shelly Katz receive? (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.) Proceeds received $4661.53. You were offered the opportunity to purchase either a simple interest note or a simple discount note with the following terms: $38,100 at 9% for 6 months. a. Calculate the effective interest rate. (Do not round intermediate calculations. Round your final answer to the nearest tenth percent.) b. Based on the effective interest rate, which would you choose? a. Effective interest rate 9.42% b. simple interest note. On May 12, Scott Rinse accepted an $9,000, 10%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 9%. (Use Days in a year table.) What proceeds does Scott receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) Proceeds received $9088.93. Bill Blank signed an $8,900 note at Citizen's Bank. Citizen's charges a 3.2% discount rate. Assume the loan is for 280 days. a. Find the proceeds. (Use 360 days a year. Round your intermediate calculations and final answer to the nearest cent.) b. Find the effective rate charged by the bank. (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest tenth percent.) a. Proceeds $8678.49 b. Effective rate 3.3% Chapter Tests 01 02 03 04 05
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Homework Chapter 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 Need A Tutor? Need Homework Help? Hafers, an electrical supply company, sold $6,000 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 3.2% interest. The due date was August 10. Short of funds, Hafers contacted Charter One Bank on July 20; the bank agreed to take over the note at a 4.9% discount. (Use Days in a year table.) What proceeds will Hafers receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.) Proceeds received $6030.71. The Treasury Department auctioned $24 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.950%. What would be the effective rate of interest? (Use calendar year. Do not round intermediate calculations. Round your answer to the nearest hundredth percent.) Effective rate of interest 5.01% There are some excellent free personal finance apps available: Mint.com, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint.com, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $6,200 335-day note at 2% to your bank at a discount rate of 3.0% on day 210. What are your proceeds? (Round your final answer to the nearest whole number.) Proceeds $6250 Assume that 3-month Treasury bills totaling $12 billion were sold in $10,000 denominations at a discount rate of 3.605%. In addition, the Treasury Department sold 6-month bills totaling $10 billion at a discount rate of 3.55%. a. What is the discount amount for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) b. What is the discount amount for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest cent.) c. What is the effective rate for 3-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) d. What is the effective rate for 6-month bills? (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) a. Discount amount for 3-months bills $90.13 b. Discount amount for 6-month bills $177.50 c. Effective rate for 3-month bills 3.64% d. Effective rate for 6-month bills 3.61% Tina Mier must pay a $2,000 furniture bill. A finance company will loan Tina $2,000 for 8 months at a 9% discount rate. The finance company told Tina that if she wants to receive exactly $2,000, she must borrow more than $2,000. The finance company gave Tina the following formula: What to ask for = Amount of cash to be received / (1 − (Discount rate × Time of loan)) a. Calculate Tina's loan request. (Do not round intermediate calculations. Round your final answer to the nearest cent.) b. Calculate the effective rate of interest. (Do not round intermediate calculations. Round your final answer to the nearest hundredth percent.) a. Loan request $2127.66 b. Effective rate of interest 9.57% |
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