The Face Value of a Simple Discount Note Is $4,000

question 68

Short Answer

The face value of a simple discount note is $4,000. The bank discount is calculated at 12% for 60 days. Use ordinary interest. Calculate:
A. Amount of interest charged for note
B. Amount borrower would receive
C. Amount payee would receive at maturity
D. Effective rate (round to the nearest hundredth of a percent)

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Definitions:

Accommodation

In optics, the ability of the eye to change its focal length to focus on objects at various distances, or the process of adjusting to something new.

Presbyopia

A condition associated with aging in which the eye's lens loses its ability to focus on close objects, resulting in difficulty with near vision.

Myopia

A common vision condition also known as nearsightedness, where distant objects appear blurry while close objects can be seen clearly.

Visual Pathway

The route taken by light signals converted into neural signals from the retina through various brain regions, culminating in visual perception in the occipital lobe.