The proceeds of a $9,500.00, 10 percent simple discounted note for 95 days is?
To find the proceeds of a simple discounted note, we need to calculate the discount amount and subtract it from the face value of the note.
The formula to calculate the discount is:
Discount = Face Value * Interest Rate * Time
Given:
Face Value = $9,500.00
Interest Rate = 10% (0.10)
Time = 95 days
First, convert the time to years. Since there are 365 days in a year, the conversion is:
Time in Years = Time in Days / 365
Time in Years = 95 / 365 ≈ 0.2603 years
Now, we can calculate the discount:
Discount = $9,500.00 * 0.10 * 0.2603
Discount = $247.59
To find the proceeds, subtract the discount from the face value:
Proceeds = Face Value - Discount
Proceeds = $9,500.00 - $247.59
Proceeds = $9,252.41
Therefore, the proceeds of a $9,500.00, 10 percent simple discounted note for 95 days is $9,252.41.
To calculate the proceeds of a simple discounted note, you need to find the discount amount first and then subtract it from the face value of the note.
The discount amount can be calculated using the formula:
Discount = Face Value * Interest Rate * Time
Here's how to calculate the discount:
Discount = $9,500.00 * 0.10 * (95/360)
Discount = $250.28
Now subtract the discount from the face value to find the proceeds:
Proceeds = Face Value - Discount
Proceeds = $9,500.00 - $250.28
Proceeds = $9,249.72
Therefore, the proceeds of a $9,500.00, 10 percent simple discounted note for 95 days is $9,249.72.
P = Po - Po*r*t.
P = 9500-9500*(0.10/365)*95 = $9252.74. = Proceeds.