Answer:
value = $ 9500
Discount = 10 %
n = 95 days
SOLVING:
9500 × 10% = 950
950 ÷ (365 × 100) = 260.27
9500 - 260.27 = 9239.7 (answer)
Explanation:
Simple discounting is the procedure of finding the present value of a given amount which in this case is $9500 that is required on a future date and includes a simple interest is called discounting at simple interest.
Consequently, to discount a sum by the simple interest procedure is to find its present value.
Answer:
$9253.00
Explanation
To find the proceeds, we need to first find the simple discount, D
The Formula for finding the simple discount is;
D = MdT
Where D = Discount = ?
M = Maturity Value = $9,500.00
d = Interest Rate = 10% = 0.10
T = Time Duration = 95 days = 95 /365 year = 0.26
D = 9500 * 0.10 * 0.26 = $247.00
To find the proceeds,
Proceed = Maturity Value - Discount
Proceed = $9500.00 - $247.00
Proceed = $9253.00
