Question

Bella Company borrowed cash from conrad bank issuing a 30 day note at a face amount of 55,200 asume 360 day year determine the proceedsof the note at 5% and the discounted note at 5%

Answer 1

Explanation:

The proceeds of the note can be calculated by multiplying the face amount by the interest rate. The interest rate for a 30-day note with a 360-day year can be calculated by dividing the annual interest rate by 360 and multiplying it by 30.

Proceeds of the note = 55,200 * (5/100/360 * 30) = 55,200 * (5/12) = 4,600

The discounted note can be calculated by subtracting the proceeds from the face amount.

Discounted note = 55,200 - 4,600 = 50,600

So, the proceeds of the note are $4,600 and the discounted note is $50,600.