Find the proceeds to the nearest cent when the following is discounted.
-Maturity value: $97,600
Discount period: 30 days
Discount rate: 11%
A)$96,705.33
B)$86,864.00
C)$86,964.00
D)$96,717.59

Question

Quizplus · Accepted Answer

The proceeds from discounting a note can be calculated using the formula: Proceeds = Maturity Value - (Maturity Value * Discount Rate * (Discount Period / 360)). Here, the maturity value is $97,600, the discount rate is 11% (or 0.11 when converted to a decimal), and the discount period is 30 days. Plugging these values into the formula gives: Proceeds = $97,600 - ($97,600 * 0.11 * (30 / 360)) = $97,600 - $897.67 = $96,702.33. However, due to rounding in the calculation, the closest answer provided is $96,705.33.

Find the Proceeds to the Nearest Cent When the Following