Rex corporation accepted a 5000.00, 8%, 120-day dated August 8 from Regis company in settlement of a past bill. On October 11, Rex discounted the note at Park Bank at 9%. What are the notes Maturity value, Discount Period, and bank discount? What proceeds does Rex receive? Please use 360 and not 365

You will find here at Jiskha that long series of questions, posted with no evidence of effort or thought by the person posting, will not be answered. We will gladly respond to your future questions in which your thoughts are included.

5678.67

To calculate the maturity value, discount period, bank discount, and proceeds received by Rex Corporation, we can follow these steps:

Step 1: Calculate the maturity value of the note:
Maturity value = Principal + Interest
Principal = $5000
Interest = Principal × Rate × Time
Rate = 8% per annum
Time = 120 days / 360 days (using 360-days convention)

Interest = $5000 × 8% × (120/360)
Interest = $133.33

Maturity value = $5000 + $133.33
Maturity value = $5133.33

The maturity value of the note is $5133.33.

Step 2: Calculate the discount period:
The note is dated August 8, and Rex discounts the note on October 11.

Discount period = Number of days from discount date to the maturity date
Discount period = October 11 - August 8
Discount period = 64 days

The discount period is 64 days.

Step 3: Calculate the bank discount:
Bank discount = Maturity value × Discount rate × Time
Discount rate = 9% per annum
Time = Discount period / 360 days (using 360-days convention)

Bank discount = $5133.33 × 9% × (64/360)
Bank discount = $91.42

The bank discount is $91.42.

Step 4: Calculate the proceeds received by Rex Corporation:
Proceeds = Maturity value - Bank discount
Proceeds = $5133.33 - $91.42
Proceeds = $5041.91

The proceeds received by Rex Corporation is $5041.91.

In summary:
- The maturity value of the note is $5133.33.
- The discount period is 64 days.
- The bank discount is $91.42.
- The proceeds received by Rex Corporation is $5041.91.

To calculate the maturity value, discount period, bank discount, and proceeds received by Rex Corporation, we need to follow these steps:

Step 1: Calculate the maturity value of the note.
The maturity value of the note is the principal amount plus the interest earned.

Principal amount (P) = $5000.00
Interest rate (r) = 8% or 0.08
Time in days (t) = 120

To calculate the maturity value, we use the formula:
Maturity value = P + (P * r * t/360)

Maturity value = $5000.00 + ($5000.00 * 0.08 * 120/360)
Maturity value = $5000.00 + ($5000.00 * 0.08 * 1/3)
Maturity value = $5000.00 + ($5000.00 * 0.026666)
Maturity value = $5000.00 + $133.33
Maturity value = $5133.33

Therefore, the maturity value of the note is $5,133.33.

Step 2: Calculate the discount period.
The discount period is the time difference between the note's date (August 8) and the discount date (October 11).

Time difference in days = Discount date - Note date

To calculate the discount period, we subtract August 8 from October 11:
October 11 - August 8 = 64 days

Therefore, the discount period is 64 days.

Step 3: Calculate the bank discount.
The bank discount is the amount deducted from the maturity value when the note is discounted.

Bank discount = Maturity value * Bank discount rate * Discount period/360

Maturity value = $5133.33
Bank discount rate = 9% or 0.09
Discount period = 64 days

Bank discount = $5133.33 * 0.09 * 64/360
Bank discount = $5133.33 * 0.09 * 0.177777
Bank discount = $82.13

Therefore, the bank discount is $82.13.

Step 4: Calculate the proceeds received by Rex Corporation.
The proceeds received by Rex Corporation is the maturity value minus the bank discount.

Proceeds = Maturity value - Bank discount
Proceeds = $5133.33 - $82.13
Proceeds = $5051.20

Therefore, the proceeds received by Rex Corporation are $5,051.20.

In summary:
- Maturity value: $5,133.33
- Discount period: 64 days
- Bank discount: $82.13
- Proceeds received by Rex Corporation: $5,051.20