The proceeds of a 120-day note were $3,800. If the discount rate was 15%, what was the face value of the note?
Added by Xavier G.
Step 1
The discount can be calculated using the formula: Discount = Face Value * Rate * Time Discount = Face Value * 0.15 * (120/360) (since 120 days is 4 months or 1/3 of a year) Discount = Face Value * 0.05 Show more…
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