Question

11-8

Ron Prentice bought goods from Shelly Katz. On May 20, Shelly gave Ron a time extension on his bill by accepting a $4,320, 6%, 175-day note. On Aug. 25, Shelly discounted the note at Roseville Bank at 8%. (Use Days in a year table.)

What proceeds does Shelly Katz receive? (Use 360 days a year. Do not round intermediate calculations. Round your answer to the nearest cent.)

Proceeds received            $   

11-9

Hafers, an electrical supply company, sold $3,800 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 3.8% interest. The due date was August 10. Short of funds, Hafers contacted Charter One Bank on July 20; the bank agreed to take over the note at a 5.5% discount. (Use Days in a year table.)

What proceeds will Hafers receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)

Proceeds received            $   

Answer 1