Use Ordinary Interest Note to Be Discounted at 10

question 77

Short Answer

Use ordinary interest:
$$\begin{array} { | l | l | l | l | l | l | l | l | } \hline & \text { Rate of } & & \text { Maturity } & \text { Date Note } & \text { Date Note } & \text { Discount } & \\ \text { Principal } & \text { Interest } & \text { Time } & \text { Value } & \text { Made } & \text { Discounted } & \text { Period } & \text { Proceeds } \\\hline \$ 18,000 & 8 \% & 120 \text { days } & \text { A } & \text { June } 9 & \text { Sept } 6 & \text { B } & \text { C } \\\hline\end{array}$$ Note to be discounted at 10%

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Definitions:

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