Hafers, an electrical supply company, sold $3,200 of equipment to Jim Coates Wir
ID: 2704391 • Letter: H
Question
Hafers, an electrical supply company, sold $3,200 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 3.75% interest. The due date was August 8. Short of funds, Hafers contacted Charter One Bank on July 9; the bank agreed to take over the note at a 5.05% discount. (Usetable value.)
What proceeds will Hafers receive? (Use 360 days a year. Do not round intermediate calculations and round your final answer to 2 decimal places. Omit the "$" sign in your response.)
Hafers, an electrical supply company, sold $3,200 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 3.75% interest. The due date was August 8. Short of funds, Hafers contacted Charter One Bank on July 9; the bank agreed to take over the note at a 5.05% discount. (Usetable value.)
Exact days-in-year calendar (excluding leap year)*Explanation / Answer
first of all we need to calculate total no. of days
Total days from 12 may to 8 august = 58 days = 58/365 = 0.158 years
Hence interest on loans ll be = 3100*0.158 = 492.60*3.75/100 = $18.47
Discount = 3218.47*5.05/100 = $ 162.53
Total amount hafers receive = 3218.47-162.53 = $3055.94
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