Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $27,500 simple discount promissory note at a certain bank. The discount rate was 16%, and the note was made on February 15 (not in a leap-year) for 119 days. (a) What proceeds (in $) will Roni receive on the note?
Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when necessary. Roni Lockard signed a $27,500 simple discount promissory note at a certain bank. The discount rate was 16%, and the note was made on February 15 (not in a leap-year) for 119 days. (a) What proceeds (in $) will Roni receive on the note?
College Accounting (Book Only): A Career Approach
13th Edition
ISBN:9781337280570
Author:Scott, Cathy J.
Publisher:Scott, Cathy J.
ChapterD: Notes Payable And Notes Receivable
Section: Chapter Questions
Problem 2P
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![Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when
necessary.
Roni Lockard signed a $27,500 simple discount promissory note at a certain bank. The discount rate was 16%, and the note
was made on February 15 (not in a leap-year) for 119 days.
(a) What proceeds (in $) will Roni receive on the note?
$ 23100](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5889c972-3959-4c43-be19-a2091909d780%2F2e305c27-818f-4163-9cb2-3c8e25afda14%2Fwcf3o8h_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Use the ordinary interest method, 360 days, to solve the following word problem. Round to the nearest cent when
necessary.
Roni Lockard signed a $27,500 simple discount promissory note at a certain bank. The discount rate was 16%, and the note
was made on February 15 (not in a leap-year) for 119 days.
(a) What proceeds (in $) will Roni receive on the note?
$ 23100
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