9.A 10%,100-day note was dated 20 september 1992.the maturity value of the note was $3083.33.If the note was discounted on 17 november 1992 at 12%,FIND
i) the maturity date of the note
= 29 december 1992
ii)the face value of the note
$3083.33 = (1+0.1(100/360)
= 1.0278
= 3083.33/1.0278
= 2.999.9
or
= (1-0.1(100/360)
= 0.9722
= 3083.33/0.9722
= 3171.49
but the answer is = 5100
actually i still confuse what actually formula to find face value.we need - or + ?
To find the face value of the note, you can use the formula for the present value of a discounted note. The formula is:
Face Value = Maturity Value / (1 + (Discount Rate * Days / 360))
In your case, the maturity value of the note is $3083.33, and the discount rate is 12%. The given discount rate is in decimal form (0.12) and the number of days is 100. Plugging in these values:
Face Value = 3083.33 / (1 + (0.12 * 100 / 360))
Now, let's calculate the face value:
Face Value = 3083.33 / (1 + (0.12 * 100 / 360))
= 3083.33 / (1 + (0.12 * 5 / 18))
= 3083.33 / (1 + 0.0333)
= 3083.33 / 1.0333
= 2982.22
So, the face value of the note should be $2982.22.
It seems there might be an error in the given answer of $5100. It is likely a mistake in the calculation or the given information. Please double-check the data provided or consult with a financial professional to clarify the issue.