After 30-days,the note is sold by Brenda to a bank that charges a simple discount rate of d = 10%.What are the proceeds of the sale?
A)$5050.33
B)$5053.05
C)$5048.83
D)$5054.41

Question

Quizplus · Accepted Answer

The proceeds of the sale can be calculated using the formula for simple discount: Proceeds = Face Value - (Face Value * Discount Rate * Time). Assuming the face value is $5100, the calculation would be: $5100 - ($5100 * 0.10 * (30/360)) = $5048.83.

After 30-Days,the Note Is Sold by Brenda to a Bank