First, Find the Initial Proceeds of the Simple Discount Note

question 9

Multiple Choice

First, find the initial proceeds of the simple discount note. Then, find the discount period, the discount, and proceeds after discounting.
-Date Loan Was Made: Jan. 25 Maturity Value: $10,000
Length of Loan: 90 days
Rate: 10%
Date of Discount: Mar. 23
Discount %: 10%

• A)Initial Proceeds: $9,750.00;
• Discount Period: 58 days;
• Discount: $183.33;
• Proceeds After Discount: $9,825.00
• B)Initial Proceeds: $9,750.00;
• Discount Period: 33 days;
• Discount: $91.67;
• Proceeds After Discount: $9,908.33
• C)Initial Proceeds: $9,750.00;
• Discount Period: 33 days;
• Discount: $183.33;
• Proceeds After Discount: $19,908.33
• D)Initial Proceeds: $9,750.00;
• Discount Period: 33 days;
• Discount: $91.67;
• Proceeds After Discount: $19,908.33

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Pertaining to or involving change from one state, condition, or phase to another.

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