Question

The proceeds of a $9,500.00, 10 percent simple discounted note for 95 days is?​

Answer 1

value = $ 9500

Discount = 10 %

n = 95 days

SOLVING:

9500 × 10% = 950

950 ÷ (365 × 100) = 260.27

9500 - 260.27 = 9239.7 (answer)

Step-by-step explanation:

Simple discounting is the procedure of finding the present value of a given amount which in this case is $9500 that is required on a future date and includes a simple interest is called discounting at simple interest.

Consequently, to discount a sum by the simple interest procedure is to find its present value.

Answer 2

$9253.00

Explanation

To find the proceeds, we need to first find the simple discount, D

The Formula for finding the simple discount is;

D = MdT

Where D = Discount = ?

M = Maturity Value = $9,500.00

d = Interest Rate = 10% = 0.10

T = Time Duration = 95 days = 95 /365 year = 0.26

D = 9500 * 0.10 * 0.26 = $247.00

To find the proceeds,

Proceed = Maturity Value - Discount

Proceed = $9500.00 - $247.00

Proceed = $9253.00