Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary.
Pinnacle Manufacturing received a $40,000 promissory note at 12% simple interest for 95 days from one of its customers. On day 70, Pinnacle discounted the note at the Berryville Bank at a discount rate of 15%. The note was made on September 12.
a. What was the maturity date of the note?
Enter the full name for the month (e.g., March)
b. What was the maturity value of the note?
$
c. What was the discount date of the note?
Enter the full name for the month (e.g., March)
d. What proceeds did Pinnacle receive after discounting the note?
$
2 answers