Word Problem 11-17

Question

Hafers, an electrical supply company, sold $3,100 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 5.50% interest. The due date was August 22. Short of funds, Hafers contacted Charter One Bank on July 13; the bank agreed to take over the note at a 6.70% discount. (Use Days in a year table.)


What proceeds will Hafers receive? (Use 360 days a year.

Answer 1

A promissory note for 8000 was written on 25th June for 90days at 10% interest. It was discounted on 5th July at 12%. Find
1) the maturity valued of the note
2) maturity date of the note
3) the days of the discount
4) discount amount
5) the proceeds.