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Complete the following table for the simple discount notes. Use the ordinary interest method. (Use 360...


Complete the following table for the simple discount notes. Use the ordinary interest method. (Use 360 days a year.) Bank dis
Complete the following table for the simple discount notes. Use the ordinary interest method. (Use 360 days a year.) Bank discount Proceeds Amount due at maturity 30.000 Discount rate 5.40% Time 170 days
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Answer #1

Bank discount = Amount due at maturity * Discount rate * Number of years
= $30,000 * 5.40% * (170/360)
= $765

Proceeds = Amount due at maturity - Bank discount
= $30,000 - $765
= $29,235

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