Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 22

Solve the application problems. Round interest and discount to the nearest cent.
SEWING CENTER Kathy Bates, owner of Marie's Sewing Center, agreed to a 10% simple discount note with a maturity value of $18,500 on July 30. She planned to add to her inventory of sewing machines with the funds. The 120-day note is sold by the lender at a 12% discount rate on September 2. Find (a) the proceeds of the original note to Bates, _____________ (b) the discount period, _____________ (c) the discount, _____________ and (d) the proceeds at the sale of the note on September 2. _____________