Question

A $15,000, 6 percent , 50-day note ,dated November 8, is discounted at 5 percent on November 28, the proceeds of the note would be?

A. $14,936,46
b. $ 15,610,64
c. $63,54
d. $15,061,98

Answer 1

D. $15061.98

Explanation:

In order to calculate the proceeds we will using the following computation:

Principal + {Principal * Discounted rate * Frequency of a year on Maturity Date}

15,000 + {15,000 * 5% * (30/365)}

Hence, the proceeds of note would be $15,061.98

Answer 2

The answer is the D option.