Find the proceeds to the nearest cent when the following is discounted.
-Maturity value: $88,400 Discount period: 89 days
Discount rate: 9%
A)$80,544.00
B)$86,433.10
C)$86,460.04
D)$80,444.00

Question

Quizplus · Accepted Answer

The proceeds can be calculated using the formula for the discount, which is: Discount = Maturity Value × Discount Rate × (Discount Period / 360). First, calculate the discount: $88,400 × 9% × (89 / 360) = $1,966.90. Then, subtract the discount from the maturity value to find the proceeds: $88,400 - $1,966.90 = $86,433.10.

Find the Proceeds to the Nearest Cent When the Following