What is the discount and the proceeds for the following discounted notes?

User Generated

cnhy_tnzol

Business Finance

Description

What is the discount and the proceeds for the following discounted notes; Face value $18,000,  Discount rate 12%, Time 80 days, 

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Explanation & Answer

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The discount is 18000*.12 *80/360= 2160* 80/360 = 480 

the proceed is   18000-480 = 17520 

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