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?

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?

To calculate the proceeds that Shelly receives when she discounts the note at Roseville Bank, we need to follow these steps:

Step 1: Determine the maturity date of the note.
Since the note is a 180-day note, we need to add 180 days to the original date, which is May 8th:

May 8 + 180 days = November 5th

So, the maturity date of the note is November 5th.

Step 2: Calculate the time between the discount date and the maturity date.
The discount date is August 16th, and the maturity date is November 5th. To calculate the time between these two dates, we count the number of days:

November 5th - August 16th = 81 days

So, the time between the discount date and the maturity date is 81 days.

Step 3: Calculate the discount on the note.
To calculate the discount on the note, we need to multiply the face value of the note by the discount rate and the time:

Discount = Face Value * Discount Rate * Time

Given:
Face Value = $3000
Discount Rate = 9% (as a decimal, 9/100 = 0.09)
Time = 81 days (as a fraction of the year, 81/365)

Discount = $3000 * 0.09 * (81/365) = $598.08 (rounded to two decimal places)

Step 4: Calculate the proceeds received by Shelly.
Proceeds = Face Value - Discount

Proceeds = $3000 - $598.08 = $2401.92 (rounded to two decimal places)

So, Shelly receives $2401.92 as proceeds when she discounts the note at Roseville Bank.