Find the Discount and Proceeds on the Simple Discount Note

question 72

Multiple Choice

Find the discount and proceeds on the simple discount note.
-Face value: $5,000.00 Discount rate: 11%
Time (days) : 60

• A)Discount: $91.67
• Proceeds: $4,908.33
• B)Discount: $0.00
• Proceeds: $5,000.00
• C)Discount: $550.00
• Proceeds: $4,450.00
• D)Discount: $90.41
• Proceeds: $4,909.59

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Definitions:

Ratio

A relationship between two quantities expressed as the quotient of one divided by the other.

Equivalent Ratio

A way to express the same relationship or proportion between two quantities, although the numbers involved may differ.

Equivalent Ratio

A proportional relationship between two quantities showing how many times one value contains or is contained within the other.

Ratio

A ratio is a quantitative relationship between two numbers showing the number of times one value contains or is contained within the other.