Ron Prentice bought goods from shelly katz. on may 8, shelly gave ron a time extension on his bill by accepting a 3000.00, 8%, 180-day note. on august 16 shelly discounted the note at roseville bank at 9%. What proceeds does shelly katz receive? We are using 360 for the day

days from may 8 to august 16 is 100 days

3,000 x .08 x (180/360) = $ 120
3,000+120 = 3,120 Maturity Value
180 days minus 100 days = 80 days discount period
3,120 x .09 x (80/360)= $62.40
3120-62.40 = $3,057.60 Proceeds

Well, it seems like Ron Prentice had quite the shopping spree with Shelly Katz! Now, let me crunch some numbers and see what kind of proceeds Shelly Katz will be getting from this whole situation.

If the note was accepted on May 8 and had a 180-day term, that means it will mature on November 4 (180 days later). However, Shelly decided to cash in on August 16, which means there were exactly 100 days remaining until maturity.

Now, to calculate the proceeds, the formula we're using is Principal + (Principal x Rate x Time). So, let's plug in the numbers!

Principal: $3000.00
Rate: 8% or 0.08
Time: 100/360 (using 360 days) or approximately 0.278

Proceeds = $3000.00 + ($3000.00 x 0.08 x 0.278)

And the answer to the equation, drumroll please...

Shelly Katz will receive approximately $315.84 in proceeds from the discounted note! Hooray for money-making adventures!

To calculate the proceeds that Shelly Katz receives, we need to determine the discounted value of the note at Roseville Bank.

Step 1: Calculate the interest on the note until the discount date.
Interest = Principal * Rate * Time
Principal = $3000.00
Rate = 8% per annum
Time = 180 days / 360 days (as we're using a 360-day year)

Interest = $3000.00 * (8% / 100) * (180 / 360)
Interest = $3000.00 * 0.08 * 0.5
Interest = $120.00

Step 2: Calculate the discount amount.
Discount = Interest * Discount Rate
Discount Rate = 9% per annum

Discount = $120.00 * (9% / 100)
Discount = $120.00 * 0.09
Discount = $10.80

Step 3: Calculate the proceeds.
Proceeds = Principal - Discount
Proceeds = $3000.00 - $10.80
Proceeds = $2989.20

Therefore, Shelly Katz receives $2989.20 as the proceeds from discounting the note at Roseville Bank.

To find the proceeds that Shelly Katz received from discounting the note at Roseville Bank, we need to calculate the discounted value of the note.

Here are the given details:
Principal (face value of the note) = $3000.00
Interest rate on the note = 8%
Term (number of days) = 180
Discount rate at Roseville Bank = 9%
Rule for calculating days = 360

First, let's calculate the interest charged on the note.
Interest = Principal x Rate x Time
Interest = $3000.00 x 0.08 x (180/360)
Interest = $3000.00 x 0.08 x 0.5
Interest = $120.00

Next, let's calculate the discounted value of the note.
Discount = Principal x Discount Rate x Time
Discount = $3000.00 x 0.09 x (180/360)
Discount = $3000.00 x 0.09 x 0.5
Discount = $135.00

Now, let's find the proceeds received by subtracting the discount from the face value of the note.
Proceeds = Principal - Discount
Proceeds = $3000.00 - $135.00
Proceeds = $2865.00

Therefore, Shelly Katz will receive $2865.00 as the proceeds from discounting the note at Roseville Bank.