Answered

Discover answers to your most pressing questions at Westonci.ca, the ultimate Q&A platform that connects you with expert solutions. Get detailed answers to your questions from a community of experts dedicated to providing accurate information. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals.

There are some excellent free personal finance apps available: Mint, GoodBudget, Mvelopes, BillGuard, PocketExpense, HomeBudget, and Expensify. After using Mint, you realize you need to pay off one of your high interest loans to reduce your interest expense. You decide to discount a $5,250, 345-day note at 3% to your bank at a discount rate of 4.5% on day 210. What are your proceeds

Sagot :

Answer: $5309.86

Explanation:

The proceeds will be calculated as:

Face value of note = $5250

Interest rate = 3%

Note tenure = 345

Number of days used = 360

Outstanding interest on note = $5250 × 3% × 345/360 = $150.94

Gross Proceeds = $5250 + $150.94 = $5400.94

Bank Discount rate = 4.5%

Discounting days = 210

Time if maturity left = 345 - 210 = 135

Discount rate for 135 days = 4.5%/360 × 135 = 1.69%

Discount value = $5400 × 1.69% = $91.14

Net proceeds after discount = $5400 - $91.14 = $5309.86

Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We appreciate your visit. Our platform is always here to offer accurate and reliable answers. Return anytime. Thank you for trusting Westonci.ca. Don't forget to revisit us for more accurate and insightful answers.