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Hillier Hillier
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Posts: 550
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6 years ago
A $4300.00 promissory note issued without interest for nine years on September 30, 2001, is discounted on July 31, 2006, at 8.32% compounded quarterly. Find the compound discount.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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Replies
wrote...
6 years ago
Due date: 2010-09-30
Discount period: 2006-07-31 to 2010-09-30: 4 years 2 months
n = (4 +  )4 = 16.6666667 i = 8.32%/4 = 0.0208
Proceeds = 4300.00(1.0208)-16.6666667 = 4300.00(.7095598) = 3051.11
Discount = 4300.00 - 3051.11 = $1248.89
Hillier Author
wrote...
6 years ago
Correct, thank you
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