On July 18, Lester accepted a $15,000, 7 3/4%, 180-day note from Ryan O'Flynn. On October 5, Lester discounted the note at Brome Bank at 8 1/4%, What proceeds did Lester receive? Use ordinary interest.

Question

Mathematics

Asher Phelps

3 February, 22:15

On July 18, Lester accepted a $15,000, 7 3/4%, 180-day note from Ryan O'Flynn. On October 5, Lester discounted the note at Brome Bank at 8 1/4%, What proceeds did Lester receive? Use ordinary interest.

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Answers (1)

Know the Answer?

Kelsie Keith · Answer 1

so Lester receive money is $13762.5

Step-by-step explanation:

Given data in question

principal = $15000

discount = 8 * 1/4 % i. e. = 8.25% = 0.0825

to find out

Lester receive money?

solution

we know ordinary interest formula i. e.

receive money = principal (1 - discount) ... 1

we all value principal and discount in equation 1 and we get receive money

receive money = principal (1 - discount)

receive money = $15000 (1 - 0.0825)

receive money = $ 13762.5

so Lester receive money is $13762.5