Math  /  Numbers & Operations

Question1.5 Promissory Notes 1) The maturity value of a 280 day non-interest bearing promissory note is $5,554.84\$ 5,554.84. What would the proceeds of the note be 100 days after it was issued if the interest rate is 9.75%9.75 \% ?

Studdy Solution
Subtract the proportionate discount from the maturity value to find the proceeds.
Proceeds=5554.84148.395406.45\text{Proceeds} = 5554.84 - 148.39 \approx 5406.45
The proceeds of the note 100 days after issuance are approximately:
5406.45\boxed{5406.45}

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