The proceeds of a $7,500.00, 10% simple discounted note for 85 days is:
To calculate the proceeds of a simple discounted note, you need to determine the discount amount and subtract it from the face value of the note.
Step 1: Calculate the discount amount.
Discount = Face Value * Interest Rate * Time
In this case,
Face Value = $7,500.00,
Interest Rate = 10% (or 0.10 as a decimal),
Time = 85 days (convert to years by dividing by 365).
Discount = $7,500.00 * 0.10 * (85/365)
Discount = $7,500.00 * 0.10 * 0.2329
Discount = $174.68
Step 2: Determine the proceeds.
Proceeds = Face Value - Discount
Proceeds = $7,500.00 - $174.68
Proceeds = $7,325.32
Therefore, the proceeds of a $7,500.00, 10% simple discounted note for 85 days is $7,325.32.
To find the proceeds of a simple discounted note, you need to calculate the discount, which is the difference between the face value of the note and the proceeds. The formula to calculate the discount is:
Discount = Face Value * Interest Rate * Time
In this case, the face value of the note is $7,500.00, the interest rate is 10% (or 0.10 as a decimal), and the time is 85 days.
Let's calculate the discount first:
Discount = $7,500.00 * 0.10 * (85/365)
To find the proceeds, subtract the discount from the face value of the note:
Proceeds = Face Value - Discount
Now we can substitute the values:
Proceeds = $7,500.00 - ($7,500.00 * 0.10 * (85/365))
Proceeds = $7,500.00 - ($750.00 * (85/365))
Proceeds = $7,500.00 - ($750.00 * 0.232876712)
Proceeds = $7,500.00 - $174.66
Proceeds = $7,325.34
Therefore, the proceeds of a $7,500.00, 10% simple discounted note for 85 days is $7,325.34.