find the discount on proceeds on a 3,270 face value note for 6 months if the discount rate is 9.5 percent
To find the discount on proceeds for a note, you can use the following formula:
Discount = Face Value × Discount Rate × Time
Given:
Face Value (FV) = $3,270
Discount Rate (DR) = 9.5% (convert this to decimal by dividing by 100, so 9.5/100 = 0.095)
Time (T) = 6 months
Now we can calculate the discount on proceeds:
Discount = $3,270 × 0.095 × 6/12
Discount = $3,270 × 0.095 × 0.5
Discount = $155.925
Therefore, the discount on the proceeds of a $3,270 face value note for 6 months with a discount rate of 9.5% is approximately $155.93.