1.Joanne borrowed RM5000 for 180 days at a discount rateof 8 1/2 %.find the proceeds.
2.A businessman needs RM12000 for four months. What should be the size of the loan if his bank charges a discount rate of 9.5%.
Correction: My calculations was based on
a 4-day loan; it should be for 4 months:
2. Pr = Po - Po*r*t = 12,000
Po - Po*(0.095/12)*4 = 12,000
Po - Po*0.03167 = 12000
0.96833Po = 12,000
Po = $12,392.46
1. P = Po - Po*r*t
P = 5000 - 5000*(0.085/360)*180
P = 5000 - 212.50 = $4787.50 = Amt.
received by Joanne(Proceeds).
2. P = Po - Po*r*t = 12,000
Po - Po*(0.095/360)*4 = 12,000
Po - Po*0.00106 = 12000
0.99894Po = 12,000
Po = $12,012.68
helo sir.
the answer question 2 in my book is 12392,43.why not same with your answer.
12000 (1+o.o95(4/12))=12380
now i want to know about how to solve.
5.Albert needs $2000 now. Find the amount that he should borrow for 120 days from a bank that charges 8% discount
5. Ar = Ab - Ab*r*t = 2,000
Ab - Ab*(0.08/360)*120 = 2,000
Ab - 0.02667Ab = 2000
0.97333Ab = 2000
Ab = $2,054.79 = Amount borrowed.
tq sir/madam..
A 7%,6O day note was discounted at 15 days before the maturity date. If the discount rate was 5.5% and the proceeds received were $ 997,77,find
a)the amount of discount that was charged
b)face value
a) 997,77= (1+0.07(60/360))
=
i cant get the answer.
what is the formula
a. Ar = Ab - Ab*r*t
Ar = Ab - Ab*(0.055/360)*(60-15)=997.77
Ab - Ab*0.006875 = 997.77
0.993125Ab = 997.77
Ab = $1004.68 = Amt. borrowed.
Ac = Ab-Ar = 1004.68 - 997.77 = $6.91 = Amt. charged.
b. Face Value = Ab = $1004.68
helo sir
the answer in my book for a) is $2.29
and b) is $988.53
how can ?
A sum of money,X was deposited in a saving account at 10 percent compounded daily on 25 july 1993. on 13 august 1993, rm600 was withdrawn and the balance as on 31 december 1993 was RM 8900.calculate the value of X using exact time and 360 day year.
help me sir.the answef of x= $9112.37
10.On 16 April 1990, $5000 was invested at 6% compounded semi annually.Find the amount accumulated on 16 October 1993 if the rate was charged to 8% compounded quarterly beginning 16 april 1992.
5000(1+0.06/2)^(2x1)
=5304.50
5304.50(1+0.08/4)^(4x1)