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- Find the term of a discount note with a maturity value of $100,000 if the proceeds are $92,984.17 and the discount
rate is 8.73%. - On June 5, 1998, Dudley purchased a 1-year $10,000 Treasury bill at a simple discount rate of 4.2%. On January 14,
1999, he sold it on the secondary market at a simple discount rate of 4.1%. (a) How much did he pay for the note?
(b) How much did he sell the note for? (c) What simple interest rate did he earn on the transaction? - A $13,575 maturity value note is discounted at an 8%. The term is 100 days. Find the proceeds.
- Calculate the amount of discount if the maturity value is $4,000 and the proceeds are $3,750.
- Josie is expecting a paycheck of $1,435.19 in 10 days. If I pay her $1,400 today in exchange for this check when it is
received, what is the simple discount rate for the loan? What is the simple interest rate? - Alvin borrowed $8,912.35 from Theodore for 125 days at a simple interest rate of 8½%. Find the amount of simple
interest and the total amount to repay the loan. - On April 17 Lucy made a loan to Linus, for which he signed a 100-day note at 7.85% simple interest. The total interest
he agreed to pay is $31.58. What is the maturity date of the note, and how much will he have to pay Lucy on that date? - Find the amount of discount on a note with a maturity value of $5,000 if the proceeds are $4,848.59.
- Janelle loaned Nicole $2,569 on January 18, 2005. The simple interest rate for the loan was 7% and the term was
300 days. On August 1 she sold the note to Parvati, using a simple discount rate of 8%. What rate of simple interest
did Nicole pay? - On April 1, 1999 Josie signed a 300-day note for $20,000 at a simple interest rate of 12¾%. Find (a) the maturity date
of the note and (b) the maturity value. - A note with a $3,000 maturity value is sold for $2,857.16. What is the amount of discount?
- Samuel bought a discount note with a $5,000 maturity value at 6% simple discount for 45 days, using bankers’ rule.
Find the proceeds. - On April 1, 2009, Presho Potato Products Company borrowed $15,000 at 8¾% simple interest for 200 days. On July 8,
2009, the lender sold the note with a 7.97% simple discount rate. Find the selling price of the note.
Chapter 2 Exercises 83