Final answer:
To calculate the proceeds of a non-interest-bearing note discounted at a given rate, use the formula P = A/(1+r/n)^(n*t), where P is the proceeds, A is the principal amount, r is the discount rate, n is the number of compounding periods per year, and t is the time in years. Plugging in the given values, the proceeds is $92,243.34.
Step-by-step explanation:
To calculate the proceeds of a non-interest-bearing note discounted at a given rate, we can use the formula:
P = A/(1+r/n)^(n*t)
where P is the proceeds, A is the principal amount, r is the discount rate, n is the number of compounding periods per year, and t is the time in years.
In this case, the principal amount is $95,600.00, the discount rate is 1.49%, and the compounding is monthly (n=12).
The time in years is calculated as 2017-2015 = 2 years.
Plugging in these values, we get:
P = 95,600/(1+0.0149/12)^(12*2)
Simplifying this equation will give you the answer: P = $92,243.34.