Rex Corporation accepted a $6,000, 6.75%, 150-day note dated August 13 from Regi

Question

Rex Corporation accepted a $6,000, 6.75%, 150-day note dated August 13 from Regis Company in settlement of a past bill. On October 5, Rex discounted the note at Park Bank at 7.75%. (Use table value.)

What is the note’s maturity value? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)

What is the bank discount? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)

What proceeds does Rex receive? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)

What is the note’s maturity value? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)

What is the bank discount? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)

What proceeds does Rex receive? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)

Explanation / Answer

1. Notes maturity value

= 6000 * 6.75% * 97/150 = 262

Maturity value = 6000 - 262 = 5738

2. Discount period is 53 days (from august ot oct)

3. Bank Discount = 6000 * 7.75% * 97/150 = 301

4. Receipt by Rex = 6000 - 301 = 5699

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