Question

okmarks People Window Help CH 11 HW X CengageNOWV2 Online tex x C Proceeds From Notes Payable x + w.com Assignment/takeAssignment Main.do?invokerStake AssignmentSession Locator &inprogress false eBook Show Me How Calculator Proceeds from Notes Payable On May year. Maynard Co, borrowed cash from Texas Bank by issuing a 120-day note with a face amount of $69,600. Assume a 360-day Required: a. Determine the proceeds of the note, assuming the note carries an interest rate of 10% b. Determine the proceeds of the note, assuming the note is discounted at 10%. Previous Next > Check My Work All work eve. Save and Bae Sumit Ansignment for Grading mp

Answer 1

A. In first case note carries Interest @ 10% which will be payable at maturity so we will receive full amount equals to Face Value of Bond which is 69600

B.Face value of note : $69,600

Discount rate : 10%

Note period is 120 days.

Days in a year is 360

Net proceeds = 69600 - 69600 * 10 % * 120/360 = $67280