A First City Bank accepted a $3,500, 5%, 120-day note dated August 8 from a Capstone Company in settlement of a past bill. On October 11, First City discounted the note at Park Bank at 6%.

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 First City receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)

Question

Mathematics

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20 March, 15:37

A First City Bank accepted a $3,500, 5%, 120-day note dated August 8 from a Capstone Company in settlement of a past bill. On October 11, First City discounted the note at Park Bank at 6%.

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 First City receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)

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Answers (1)

Know the Answer?

Misael Pollard · Answer 1

Notes Maturity Notes

Oct 22 - - - > 284 daysAug 8 - - - > 220

Grand Total - - > 64 days passed

Discount Period

120-64 = 56 days

$3,500 x. 05 x 120/360 = $58.33$3,500 + $58.33 = $3,558.33

Bank Discount

$3,558.33 x. 06 x 56/360 = $33.21

Proceeds

$3.558.33 - $33.21 = $3,525.12