Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary.

Pinnacle Manufacturing received a $40,000 promissory note at 12% simple interest for 95 days from one of its customers. On day 70, Pinnacle discounted the note at the Berryville Bank at a discount rate of 15%. The note was made on September 12.

a. What was the maturity date of the note?

Enter the full name for the month (e.g., March)

b. What was the maturity value of the note?

$

c. What was the discount date of the note?

Enter the full name for the month (e.g., March)

d. What proceeds did Pinnacle receive after discounting the note?

$

To solve this word problem using the ordinary interest method, we'll need to calculate various values based on the given information. Let's break it down step by step:

a. To find the maturity date of the note, we need to add the specified number of days (95 days) to the note's starting date (September 12).

Starting from September 12, count 95 days forward to find the maturity date.

September has 30 days, so we'll subtract 30 from the remaining 95 days. That leaves us with 65 days.

October also has 31 days, so we subtract another 31 from the remaining 65 days. That leaves us with 34 days.

Since November starts on day 1, we can conclude that the maturity date of the note is November 15.

b. The maturity value of the note can be calculated by adding the interest to the principal amount. The interest can be calculated using the formula:

Interest = Principal × Rate × Time

In this case, the principal is $40,000, the rate is 12% (0.12 as a decimal), and the time is 95 days (out of 360 days).

Calculating the interest:

Interest = $40,000 × 0.12 × (95/360) = $1,266.67

The maturity value of the note is obtained by adding the principal and the interest:

Maturity value = Principal + Interest = $40,000 + $1,266.67 = $41,266.67

c. To find the discount date of the note, we need to subtract 15 days (the discount period) from the maturity date (November 15).

Starting from the maturity date, we subtract 15 days to find the discount date:

November has 30 days, so we subtract 15 days from the remaining days. That leaves us with 15 days.

Thus, the discount date of the note is October 31.

d. The proceeds Pinnacle received after discounting the note can be calculated by applying the discount rate to the maturity value. The discount can be calculated using the formula:

Discount = Maturity Value × Discount Rate × Time

In this case, the maturity value is $41,266.67, the discount rate is 15% (0.15 as a decimal), and the time is 70 days (out of 360 days).

Calculating the discount:

Discount = $41,266.67 × 0.15 × (70/360) = $800.00

The proceeds Pinnacle received after discounting the note is obtained by subtracting the discount from the maturity value:

Proceeds = Maturity Value - Discount = $41,266.67 - $800.00 = $40,466.67

So, the answers to the word problem are:
a. The maturity date of the note is November.
b. The maturity value of the note is $41,266.67.
c. The discount date of the note is October.
d. Pinnacle received proceeds of $40,466.67 after discounting the note.