Formula sheet
A | B | C | D | E | F | G | H | I |
2 | Ordinary Interest Note: | |||||||
3 | Date of Note | Face Value | Length of note (Days) | Interest rate | Bank Discount Rate | Date of discount | ||
4 | 43565 | 40000 | 170 | 0.05 | 0.02 | 43626 | ||
5 | ||||||||
6 | a) | |||||||
7 | ||||||||
8 | Interest | =Face Value*Interest rate*Time | ||||||
9 | =$40,000*5%*(170/360) | |||||||
10 | =D4*F4*(E4/360) | =D4*F4*(E4/360) | ||||||
11 | ||||||||
12 | Maturity Value | =Face Value + Interest | ||||||
13 | =$40,000+$944.44 | |||||||
14 | =D4+D10 | =D4+D10 | ||||||
15 | ||||||||
16 | b) | |||||||
17 | ||||||||
18 | Discount period is the period between the date of discount and the due date. | |||||||
19 | ||||||||
20 | Date of discount | =H4 | ||||||
21 | ||||||||
22 | Date of note | =C4 | ||||||
23 | Length of note | 170 | days | |||||
24 | ||||||||
25 | Due date | =Date of Note + Length of note | ||||||
26 | =D22+D23 | =D22+D23 | ||||||
27 | ||||||||
28 | Discount period | =Due Date - Date of Discount | ||||||
29 | =D26-D20 | =D26-D20 | ||||||
30 | ||||||||
31 | Hence Discounting period is | =D29 | Days | |||||
32 | ||||||||
33 | c) | |||||||
34 | ||||||||
35 | Bank Discount | =Maturity Value*Bank Discount Rate*(Discount Period / 360) | ||||||
36 | =$40,944.44*2%*(109/360) | |||||||
37 | =D14*G4*(D31/360) | =D14*G4*(D31/360) | ||||||
38 | ||||||||
39 | Hence Bank Discount is | =D37 | ||||||
40 | ||||||||
41 | d) | |||||||
42 | ||||||||
43 | Proceeds | =Maturity Value - Bank Discount | ||||||
44 | =$40,944.44 - $247.94 | |||||||
45 | =D14-D39 | |||||||
46 | ||||||||
47 | Hence proceeds is | =D45 | ||||||
48 |
Please help. Please provide answer and formula. Styles Paragraph LU 11-2 Dase of Agil 10 540.000...
Please help. Please provide answer and formula.
264 Chapter 10 Simple Interest LU 10-2a EXTRA PRACTIC Complete the following (assume 360 days): Need more practice? Try this Extra Practice Quiz (check tigures in Chapter Organizer P 267) Interest Time Principal rate 1. 2. $6,.000? 3. $900 Simple interest $9,000 280 190 90 days 180 days 4% 6% Learning Unit 10-3: U.S. Rule-Making Partial Note Payment before Due Date Often a person may want to pay off a debt in more...
Please help. Please provide answer and formula.
LU 10-3 Polly Flin bonowel S5000 for 60 days mees. On day 40, Polly made $1.900 partial payment. Whas is Polly's ending balance due under the US. Rale (assume a 360-day year)? 8%. Onday 10, Polly mde a S600 partial pay. hartie-Onlı Complete this to see how you are deing Solutions $1,900.00 -29A1 4,411.11 1.87059 600.00$5,000.00 52.540.52 x 08x0- S 11.29 + 2.540.52 30 sull." ×,08 × -S2941 Both questions LU 10-3a EXTRA...