The Face Value of a Note Is $7,000 with an Interest

Multiple Choice

The face value of a note is $7,000 with an interest rate of 11%. The time is based on 90 days in a 360-day year, and the loan was taken out on February 11 in a nonleap year. The note has been discounted 14% on March 10. What are the proceeds?

A) $1,285.42
B) $1,293.53
C) $7,016.28
D) $7,360.33