Ron bought goods from shelly katz. On may 8, shelly gave ron a time extension on his bill by accepting a $3000, 8%, 180 day note. On august 16, shelly discounted the note at Roseville bank at 9% what proceeds does shelly rerceive?
what the hell kind of answer is that
3057.60
To determine the proceeds that Shelly receives from discounting the note at Roseville bank, we need to calculate the discount and subtract it from the face value of the note.
First, let's calculate the discount. The formula to calculate the discount is:
Discount = Face Value of the Note * Interest Rate * Time
In this case, the face value of the note is $3000, the interest rate is 9%, and the time is the number of days between May 8 and August 16, which is 100 days.
Discount = $3000 * 9% * (100/360) = $750
Next, we subtract the discount from the face value of the note:
Proceeds = Face Value of the Note - Discount
Proceeds = $3000 - $750 = $2250
Therefore, Shelly receives $2250 as proceeds when she discounts the note at Roseville bank.