Ask questions and get helpful responses.
Ask a New Question
  1. Questions

math

on may 12, Scott accepted an $8000, 12%, 90 day note for a time extension of a bill for goods bought by ron. On june 12, scott discounted the note at able bank at 10% What proceeds does scott receive

  1. 👍
  2. 👎
  3. 👁
  4. ℹ️
  5. 🚩
help

  1. The present value P of the note, assuming it is risk free, two months before it is due, is given by
    8000 = P (1 + 0.12/6) = 1.02 P
    Therefore P = $7843.

    I assumed simple interest without compouhding, to keep it simple.

    Discounting the note 10% (presumably to account for risk and inconvenience) makes it worth 90% of that, or $7059.

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    drwls

  2. 8104.96

    1. 👍
    2. 👎
    3. ℹ️
    4. 🚩
    phorxx

Respond to this Question

First Name

Your Response

Similar Questions

  1. College Algebra

    A rectangular garden is 20 ft longer than it is wide. Its area is 8000 ft{}^2. What are its dimensions? w(w+20) = 8000 w^2+20w = 8000 w^2+20w-8000 = 0 (w-80)(w+100) = 0 w-80 = 0 w=80 or w+100 = 0 w = -100 I think that x=80 makes

  2. LA

    What was the Supreme Court's ruling on the Dred Scott case? Dred Scott should be considered free since he had lived in many states where slavery was banned. Dred Scott could be free if he paid a fee. Dred Scott was still a slave

  3. business Math

    On May 12, Scott Rinse accepted an 8000.00, 12%, 90-day note for a time extension of a bill for goods bought by Ron Prentice. On June 12, Scott discounted the note at Able Bank at 10% What proceeds does Scott receive?

  4. Supportive Learning Environment

    Scott is just beginning to learn the names for the letters of the alphabet. Which of the following would be an example of the teacher scaffolding his learning? A. The teacher tells Scott, "You need to learn all your letters, and

  1. Computer Science

    Create a Raptor Flowchart that calculates the amount a person would earn over a period of time if his or her salary were five cents the first day, ten cents the second day, and so on doubling each day. Your program should: 1.

  2. math

    Scott, Mike, and Holly shared an order of French fries. Scott ate x fries. Mike ate one more than twice the amount of fries that Scott ate. Holly ate 5 fewer fries than Scott did. If there were 6 fries left, how many fries were in

  3. Discount Notes

    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

  4. physics

    Compare the slope of the velocity-time graph to the average of all your acceleration values. Are they close? What does the slope of a velocity (or speed) vs. time graph mean? Explain the answer using your data. How does the value

  1. muisc

    In 4/4 time, what note gets the beat? A. eighth note B. quarter note C. half note D. whole note

  2. linear algebra

    The weather on any given day in a particular city can be sunny, cloudy, or rainy. It has been observed to be predictable largely on the basis of the weather on the previous day. Specfically: if it is sunny on one day, it will be

  3. Business Math

    Janet Jones borrowed $3,000 on 90-day 12 percent note. Janet paid $250 toward the note on day 35. On day 80 she paid an additional $400. Using the U.S. Rule her adjusted balance after her first payments is: Answer: $2,785 Please

  4. business and finance

    Mobilee Oil Company accepted a $10,000, 120-day note, dated March 3, at 8.5% to settle a past due accounts receivable. Mobilee Oil discounted the note to raise cash on May 10 at a discounted rate of 9%. What proceeds did Mobilee

Still need help? You can ask a new question.