Solve for maturity value, discount period, bank discount, and proceeds. Assume a
ID: 2704396 • Letter: S
Question
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9%. Use the ordinary interest method. (Use table value.) (Use 360 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Solve for maturity value, discount period, bank discount, and proceeds. Assume a bank discount rate of 9%. Use the ordinary interest method. (Use table value.) (Use 360 days a year. Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Exact days-in-a-year calendar (excluding leap year)*Explanation / Answer
July 29 210 days
June19 -170 days
(210-170)= 40 days
45000x.11x75/360= 1031.25
Maturity valu= 45000+1031.25= $46031.25
Discount period= 75-40= 35 days
Bank discount= 46031.25x.09x35/360= $ 402.77
Proceeds= 46031.25 -402.77= $45628.48
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