A six-month note would mature on 15 December 2020 with a maturity value of RM3750. The note is discounted two months before the maturity date and proceeds received are RM3718.75. Find: i. The date of the note ii. The discount
To find the date of the note, we need to determine the original issue date by subtracting six months from the maturity date.
i. The date of the note:
1. Subtract six months from the maturity date, 15 December 2020.
(15 December 2020) - (6 months) = 15 June 2020
Therefore, the note was issued on 15 June 2020.
ii. The discount:
To calculate the discount, we need to find the difference between the maturity value and the proceeds received.
1. Subtract the proceeds received from the maturity value.
RM3750 - RM3718.75 = RM31.25
Therefore, the discount on the note is RM31.25.