The Face Value of a Note Is $7,500 with an Interest

question 11

Essay

The face value of a note is $7,500 with an interest rate of 12%. The time is based on 90 days in a 360-day year. The note has been discounted at 15% two months before the maturity of the note. How much is the discount and the proceeds?

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Definitions:

Social Organization

The structured arrangement of social relationships and institutions that collectively form the basis of society or within specific groups.

Division of Labor

The allocation of different tasks to different people or groups in a society, aimed at increasing efficiency and productivity in the production process.

Collective Conscious

An aggregation of mutual convictions, notions, and ethical positions that function as a consolidating power within a community.

Mechanical Societies

Term used by Émile Durkheim to describe simple, traditional societies connected by similarities and communal bonds rather than complex division of labor.