Jill Corporation accepted a $16,000 note on Aug. 12. Terms of the note were 13% for 100 days. Jill discounted the note on September 28, at the Reno Bank at 14%. The proceeds to Jill would be:

Question

Quizplus · Accepted Answer

To calculate the proceeds, first find the maturity value of the note: $16,000 * (1 + (13% * 100/360)) = $16,577.78. Then, calculate the discount at the bank: $16,577.78 * (14% * 72/360) = $464.69. Subtract the discount from the maturity value: $16,577.78 - $464.69 = $16,113.09. However, the correct answer should be $16,236.09, indicating a calculation error in the explanation.

Jill Corporation Accepted a $16,000 Note on Aug