Find the maturity date and proceeds. Round to the nearest cent.
-Face value: $28,223 Discount rate: 11.5%
Date made: April 29
Time: 90 days
Maturity date: Proceeds:
A)Maturity date: July 29 Proceeds: $27,422.70
B)Maturity date: July 29 Proceeds: $27,411.59
C)Maturity date: July 28 Proceeds: $27,411.59
D)Maturity date: July 28 Proceeds: $27,422.70

Question

Find the maturity date and proceeds. Round to the nearest cent.
-Face value: $28,223 Discount rate: 11.5%
Date made: April 29
Time: 90 days
Maturity date:  Proceeds: 
A)Maturity date: July 29 Proceeds: $27,422.70 
B)Maturity date: July 29 Proceeds: $27,411.59 
C)Maturity date: July 28 Proceeds: $27,411.59 
D)Maturity date: July 28 Proceeds: $27,422.70

Quizplus · Accepted Answer

To find the maturity date, we need to add the time (90 days) to the date made (April 29). July 28 is 90 days from April 29. To find the proceeds, we need to multiply the face value ($28,223) by 1 minus the discount rate (11.5%) times the time (90/360, since it is a 90-day discount). $28,223 * (1-0.115) * (90/360) = $27,411.59, rounded to the nearest cent. Therefore, the correct answer is C.

Find the Maturity Date and Proceeds