Nolan Ryan borrowed $8,000 for 120 days from Marquette Bank. The bank discounted the note at 8%. What proceeds does Ryan receive? Calculate the effective rate to the nearest hundredth percent. Use ordinary interest as needed.
Kiplinger's Personal Finance Magazine reported on the effective rate of 1-year Treasury bills. If a $10,000 Treasury bill sold for $9,498, what is the effective rate the nearest hundredth percent?
On a $150,000 loan, what would be the difference in proceeds received if the Federal Reserve decided to boost the discount rate from 5% to 5 ¼ %?
On May 31, 2005, Saxon Paint and Hardware sold $1,200 in paint to Reliable House Painters. Reliable signed a promissory note with terms of 6% interest due on August 3, 2005. On June 15, Saxon needed funds and turned the note over to Harris Bank whose discount rate was 8%. What proceeds will Saxon receive?
Matt French borrowed $9,000 for 150 days from Lee Bank. The bank discounted the note at 7%. (a) What proceeds does Matt receive? (b) Calculate the effective rate to the nearest hundredth percent. Use ordinary interest as needed.
The Treasury Department sold $14 billion in 3-month bills at a discount rate of 3.435%. An additional$12 billion were sold in 6-month bills at a rate of 3.38%. (a) What amount did the Treasury Department receive for the 3-month bills? (b) What amount did the Treasury Department receive for the 6-month bills?
Sun Trust Bank lowered interest from 7.5% to 7%. Joe Carter, a manufacturer of electric generators, sold $9,880 of goods to Browns Electronics. Browns signed a 90-day promissory note with a maturity value of $10,015.85. Joe decided to discount the note at Sun Trust. The loan has 40 days left to maturity. (a) What proceeds will Joe receive with the new rate? (b) What proceeds would Joe have received if Sun Trust hadn't lowered its interest rate?
On August 7, Matt Kaminsky accepted a $60,000, 8%, 160-day note from Sam Slater. On October 5, Matt discounted the note at Roger Bank at 9%. What proceeds did Matt receive?
Three-month Treasury bills totaling $12 billion were sold in $10,000 denominations at a discount rate of 3.605%. In addition, the Treasury Department sold 6-month bills totaling $10 billion at a discount rate of3.55%. (a) What is the discount amount for 3-month bills? (b) What is the discount amount for 6-month bills? (c) What is the effective rate of 3-month bills? (d) What is the effective rate for 6-month bills? Round to the nearest hundredth percent.
Just Nut N Bolts has a 90-day $1,200 promissory note dated April 7, 2006. The interest on the note is 5%. On May 28, Just Nuts N Bolts needed cash. In checking with First National Bank, Just Nuts N Bolts learned the bank's discount rate was 6 ½%. After the note was turned over to the First National Bank, it was determined the LaSalle Bank discount rate was 6%. How much more in proceeds would Just Nuts N Bolts have received by choosing LaSalle?
