Solve the problem.
-A holder of a $3,000, 10%, 120-day note dated June 2 decides to sell the note at a discount. The note is sold on July 23 at a discount of 12%. Find the proceeds.
A)$3,028.70
B)$2,987.18
C)$3,040.58
D)$3,027.67

Question

Quizplus · Accepted Answer

The proceeds of the note are $3,028.70. The discount is $3,000 x 12% x 120/360 = $120. The proceeds are $3,000 - $120 = $2,880. The interest earned is $3,000 x 10% x 51/360 = $42.87. The total proceeds are $2,880 + $42.87 = $3,028.70.

Solve the Problem. -A Holder of a $3,000, 10%, 120-Day Note Dated June