# Discount Notes

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Ron Prentice bought goods from shelly katz. on may 8, shelly gave ron a time extension on his bill by accepting a 3000.00, 8%, 180-day note. on august 16 shelly discounted the note at roseville bank at 9%. What proceeds does shelly katz receive? We are using 360 for the day

• Discount Notes -

days from may 8 to august 16 is 100 days
3,000 x .08 x (180/360) = \$ 120
3,000+120 = 3,120 Maturity Value
180 days minus 100 days = 80 days discount period
3,120 x .09 x (80/360)= \$62.40
3120-62.40 = \$3,057.60 Proceeds

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