Do calculations on scrap paper as needed. Worked-out solutions are provided at end.
- Andre Fox borrowed $15,000 on a non-interest-bearing, simple discount, 7 1/2% 90-day note. Assume ordinary interest. What is (a) maturity value, (b) the bank's discount, (c) Andre's proceeds, and (d) the effective rate to nearest hundredth percent?
- Joy Lindman buys a $10,000 13-week Treasury bill at 8 1/4% What is her effective rate? Round to the nearest hundredth percent.
- Frost Corporation accepted a $20,000, 8%, 90-day note on July 8. Frost discounts the note on September 6 at East Bank at 9%. What proceeds did Frost receive?
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