Teacher: Sok Leoun

Subject :Mathemetics for Business and Finance

Student: Chhe HengLeap & Noun Chankanika & Sor Reaksa

1.A note with a maturity value of $18,340 is due in 90 days, and is discounted
at a rate of 11.3%. Find the amount of the discount and the proceeds of the
loon.
>Find the amount of the discount .

D=𝑀×𝑑×𝑇

M = $18,340 , d = 11.3% = 0.113 , 𝑇 = 90𝑑𝑎𝑦𝑠 = 365

90

𝐷 =18,340×0.113× 90 365 =$511.007

> Find the Proceed.
P =𝑀 − 𝐷
M =$18,350 , D = $511.007
P =18,350− 18.60 =$ 17,828.993
2. A note with a maturity value of $25,000 is discounted at a rate of 14%.
The maturity date of the note is December 15, and the loan date was
February 28. (a) Find the loan proceeds. (b) Find the equivalent rate of
simple interest for this loan
>a) Find the loan Proceeds

P=𝑀(1−𝑑𝑇)
 P=$25,000 , 𝑑 =14%=0.14 , 𝑇=270

𝑃 =25,000(1−0,14× 365 )=$22.411

270

> b) Find the Equivalent simple interest

𝐼 =𝑃R𝑇
I
R= PT

T=270 = 365
270

I=$25,000−$22,411 = $2,589
R= 2,589 22,411 ×270 365 =15.62%
3.Nancy loaned Lisa $12,700 for 200 days at a simple interest rate of 5.2%.
Thirty days later, she sold the note to Lynn at a simple discount rate of 4%%.
Find the amount Lynn paid for the note.

P=𝑀(1−𝑑𝑇)
> Find the amount

T=200−30=170𝑑𝑎𝑦𝑠= 365
170

𝑑=4%=0.04

R=5.2%=0.052 , 𝑃=$12,700 , 𝑇=200/ 365

M=P(1+rT)

M=12,700`(1+0.052 x
365 )=$709.5865
200

170
P=709.5865(1−0.04× 365 )=$24,290.4135
4. Find the term of a discount note if the maturity value is $10,000, the
proceeds are $9,715, and the simple discount rate is 5.09%
>Find the amount
P=𝑀(1−𝑑𝑇)
T=186𝑑𝑎𝑦𝑠=186/ 365 , M=20,000 , d=6,25=0.0625
186
P=20,000(1−0.0625× 365 )=$19,363.01
 5. Topical Tropical Fruit Company is borrowing money by offering to sell
discount notes that mature for $20,000 on March 30, 2007. On September
25, 2006, Bestinvest Financial Management bought one of the notes at a
discount rate of 6.27%. Find the amount paid for the note, and the simple
interest rate for this loan.

𝑃=𝑀(1−𝑑𝑇)
>Find the amount

𝑀=$20,000 ,𝑑=6.25%=0.0627, T=186𝑑𝑎𝑦𝑠=186/ 365

𝑃=$20,000(1−0.0625×186/ 365 )=$19,360.80
6. If a 6-month note has a simple discount of $200 and a simple interest
rate of 8%, what is its maturity value?

D=𝑀𝑑T
>Find the maturity value

𝑀=𝐷 𝑑𝑇
D=$200 , 𝑑=8%=0.08 , 𝑇=6𝑚𝑜𝑛𝑡ℎ= 6/ 12
D= 200 0.08 × 6 12 =$5,000
7. A note that matures for $700 is sold for $680. If the term is 2 months,
find the simple discount rate and simple interest rate
>Find the simple discount

𝑑= 𝐷/ 𝑀𝑇
D =𝑀𝑑𝑇

𝐷 =$700−$680 =$20 , 𝑀 =$700 ,𝑇 = 2 /12

𝑑 = 20 700× 2 12 =0.1714 = 17.14%
Find the simple interest rate

R= 𝐼/ 𝑃𝑡
I=𝑃𝑟𝑇

𝐼 =700−680=20 , 𝑃=$680 , 𝑇= 2 /12

R= 20 680× 2/ 12 =0.1764=17.64%
8. Tam bought a 180-day note from Jerry for $11,346. The note's maturity
value is $11,857. Find the rate of simple interest for the note. Find the rate
of simple discount for this note.
>Find the rate of the simple interest
 I =𝑃𝑟𝑇 ↔𝑟= 𝐼 𝑃𝑇 𝐼 =𝑀−𝑃=$11,857−$11,346 = $511 , 𝑃 =$11,346 ,𝑇
=180 𝑟 = 511 11,346 × 180 360 360 =0.09 = 9%  Find the simple discount
9. Hugh borrows $23,000 from Derron, signing a 150-day note at a simple
interest rate of 9.3%. Sixty days later, Derron sells the note to Louise at a

Louise pay for the note PC = 𝑀(1−𝑑𝑇) � �=$23,000,𝑇 = 150−60 = 90

discount of 8.26%. How much did Louise pay for the note?  How much did

360 PC = 23,000(1 −0.0826× 90 360 =$22,525,05 ) , 𝑑 = 8.26% = 0.0826

Therefore, Louise pay for the note is $22,525.05 10. Larry borrows $20,000
from Bob, signing at 215-day note at a simple interest rate of 11.5%. Ninety
days later, Andy buys the note from Bob at a simple discount of 11.8%. (a)
How much did Andy pay? (b) What simple interest rate does Bob actually
earn on the transaction? (c) What simple interest rate does Larry actually

=0.118,𝑇 = 125 Tear 365  𝑀=𝑃(1+𝑟𝑇) � � =$20,000 ,𝑟 = 11.5% = 0.115

pay?  a) Find the much did Andy pay P =𝑀(1−𝑑𝑇) � � =11.8%

� �=20,000(1+0.115×125 365 =$24,945 ) ↔𝑃=24,945(1−0.118×125

=𝐴−𝑃 𝑃𝑇 𝐴 =$21,237.53 ,𝑃 = $20,000 ,𝑇 = 90 𝑟 =21,235.53−20,000

365 ) =$21,237.53  b) Find the simple interest rate � � =𝑃(1+𝑟𝑇) ↔𝑟

larry actually pays � � =𝑃(1+𝑟𝑇) ↔𝑅 =𝐴−𝑃 𝑃𝑇 𝐴 =$24,945 ,𝑃 =

20,000 × 90 365 365 Year =0.251 = 25.1%  c)Find the simple interest rate

$20,000 𝑇 = 215 365 Year � � =24,945−20,000 20,000 ×215 365 =0.42 =

42% Therefore, the Andy pay is $21,237.53 The simple interest rate is 25.1%
The simple interest rate Larry actually pays is 42% 11. Find the term of a
discount note with a maturity value of $100,000 if proceeds are $92,984.17

𝑃 𝑀 𝑑 𝑃 =$92,983.17 ,𝑀 = $100,000 ,𝑑 = 8.73% = 0.0873 1−92,984.17 𝑇

and the discount rate is 8.73%  Find the term � � =𝑀(1−𝑑𝑇)↔𝑇= 1−

= 100,000 0.0873 =0.8037×365 = 293𝑑𝑎𝑦𝑠 Therefore, the term is 293days

12. On June 5, 1998, Dudley purchased a 1-year $10,000 Treasury bill at a
simple discount rate of 4.2%. On January 14, 1999, he sold it on the
secondary market at a simple discount rate of 4.1% (a) How much did he
pay for the note? b) How much did he sell the note for? (c)What simple
interest rate did he earn on the transaction?  a) How much did he pay for
note � � =𝑀(1−𝑑𝑇) � �=$10,000 ,𝑑 = 4.2% = 0.042 ,𝑇 = 1𝑦𝑒𝑎𝑟 �
� =10,000(1−0.0412×1) =$9,580  b) How much did he sell the note � �
=𝑀(1−𝑑𝑇) � �=$10,000 ,𝑑 = 4.1% = 0.041 ,𝑇 = 13. A $13,575 maturity

 Find the Proseccos D = MdT M =$13,575, d =8% =0.08 , 𝑇 = 100 𝐷

value note is discounted at an 8%. The term is 100 days. Find the proceeds.

=13,575×0.08×100 356 Total P = M-D =301.44 = 13,575-301.44 = $13,

27356 Therefore, the Proseccos is $13, 27356 365 14. Calculate the amount
of discount if the maturity value is $4,000 and the proceeds are $3,750. 
Find the Process D =M-P M=$4,000, P= $3,884 D = $4,000-$3,884 =$116
Therefore, the Proseccos is $116 15. Josie is expecting a paycheck of
$1,435.19 in 10 days. If I pay her $1,400 today in exchange for this check
when it is received, what is the simple discount rate for the loan? What is

�=𝑀(1−𝑑𝑇)↔𝑑=1− 𝑃 𝑀 𝑇 � �=$1,435.19 ,𝑃=$1,400 𝑇= 10 360

the simple interest rate?  Find the simple discount �

interest � �=𝑃(1+𝑟𝑇)↔𝑟=𝐴−𝑃 𝑃𝑇 � �=$21,237.53,𝑃=20,000 ,𝑇=

Year � �=1− 1,400 1,435.19 10 360 =0.8826=88.26%  Find the simple

90 365 � �= 21,237 5320,000 20,000× 10 365 =0.9=9% Therefore, the

simple discount is 88.26% The simple interest rate is 9% 16. Alvin borrowed
$8,912.35 from Theodore for 125 days at a simple interest rate of 8%%. Find
the amount of simple interest and the total amount to repay the loan. 
Find the amount of the simple interest � �=𝑃𝑟𝑇 �
�=$8,912.35 ,𝑟=8.5%=0.085 ,𝑇=125 360 Year � �=8.912.35×0.085×125
360 =$263  The total amount to repel � �=𝑃𝐼 � �=$8,912.35 ,𝐼=$263
=8,912.35×263 =$9,175 Therefore, the amount of the simple interest is
$263 The total amount to repel is $9,175 17. On April 17 Lucy made a loan
to Linus, for which he signed a 100-day note at 7.85% simple interest. The
total interest he agreed to pay is $31.58. What is the maturity date of the
note, and how much will he have to pay Lucy on that date?  Find the
maturity On April 17 and it lasts for 100days. We count 100days forward 
April 17 to April 30 13days  May 31days  June 30days  July 26days
(Total =100days) So, the maturity date is July, 26 18. Find the amount of
discount on a note with a maturity value of $5,000 if the proceeds are
$4,848.59.  Find the amount of the discount � � =𝑀−𝑃 �
�=$5,000 ,𝑃 = $4,848.59 =5,000−4,848.59 =$151.41 Therefore, the
amount of the discount is $151.41 19. Janelle loaned Nicole $2,569 on
January 18, 2005. The simple interest rate for the loan was 7% and the term
was 300 days. On August 1 she sold the note to Parvati, using a simple

simple interest rate � �=𝑃(1−𝑟𝑇)↔𝑟=𝑀−𝑃 𝑃𝑇 𝑃 =$2,569 ,𝑇 = 300

discount rate of 8%. What rate of simple interest did Nicole pay?  Find the

365 𝑌𝑒𝑎𝑟  Find M � �=𝑃(1+𝑟𝑇) � � =$2,569 ,𝑟 = 7% =0.07 ,𝑇 = 300

𝑀=2,569(1+0.07×300 =$2,719.66 ↔𝑟=2,719.66−2,569 2,569 ×300 365
=0.0714 = 7.14% Therefore, the simple is 7.14% 360 365 ) Year 20. On April
1, 1999 Josie signed a 3000 days note for $20,000 at a simple interest rate
of 123/4%. Find (a) the maturity date of the note and (b) the maturity
value.  a) Find the maturity date The loan start on April 1, 1999 adding

�=𝑃+𝐼  Find I � � =𝑃𝑟𝑇 � � =$20,000 ,= 0.12 ,𝑇 = 300 360 𝐼

300days - April 300days = January 25, 2000  b) Find the Maturity Value �

=20,000×0.1275×300 360 =$2,125 ↔𝑀=20,000+2,125 =$22,125 �

�𝑒𝑎𝑟 , r =123/4%=12.75% =0.1275 Therefore, the maturity is January, 25,
2000 The Maturity Value is $22,125 21. A note with a $3,000 maturity value
is sold for $2,857.16. What is the amount of discount?  Find the amount of
discount � � =𝑀−𝑃 � �=$3,000 ,𝑃 = $2,557.16 =3,000−2557.16
=$142.84 Therefore, the amount of the discount is $142.84 22. Samuel
bought a discount note with a $5,000 maturity value at 6% simple discount
for 45 days, using bonkers' rule. Find the proceeds.  Find the proceed �

= 45 360 𝐷 =5,000×0.06× 45 360 =$37.50 ↔𝑃 =5,000−37.50 =$4,962.50

� =𝑀−𝐷 � �=$5,000  Find discount � � =𝑀𝑑𝑇 � � =6%=0.06 ,𝑇

� �𝑒𝑎𝑟 Therefore, the proceed is $4,962.50 23. On April 1, 2009, Presho

Potato Products Company borrowed $15,000 at 8 ¾ simple interest fro
200days. On July 8, 2009 the lender sold the note with a 7.97% simple
discount rate. Find the selling price of the note.  Find the selling price of

M � �=𝑃+𝐼 𝑃=$15,000 � �=𝑃𝑟𝑇 r =83/4 = 8.75 = 0.0875𝑇=200 360

the note � � =𝑀(1−𝑑𝑇) � � =7.97% =0.0797 ,𝑇 = 102 360 Year  Find

Year � �=15,000×0.0875×200 360 =$729.16

→𝑀=15,000+729.16=$15,729.26 � �=15,729.29(1−0.0797×102 360)
=15,374.09 Therefore, the selling price of the note is $15,374.09 24. Find

time line.  Find the simple interest � �=𝑀𝑑𝑇↔𝑑= 𝐷 𝑀𝑇 �

the simple interest and simple rates for the loan illustrated by the following

�=$17,357.19 ,𝑀=$19,357.08 𝑇=250 365 Year � �= 17,357.19

19,357.08×250 365 =1.30%  Find the simple interest rate � �=𝑀−𝑃 �
�=$19,357.08 ,𝑃=$17,357.19 � �=19,357.08−17,357.19 =$1999,89
Therefore, the simple interest is 1.30% The simple discount $1999,89 25. A
$10,000 T Bill with 130 days until maturity is sold with a 5.01% simple

𝑀=$10,000,𝑑=5.01%=0.5001 ,𝑇=130 360 Year 𝐷=𝑀𝑇𝑑

discount rate. Find the proceeds.  Find the proceed PC =𝑀−𝐷

𝐷=10,000×0.5001×130 360 𝐷=$180.89 PC =10,000−180.89 =$9,819.11

Thereforem the proceed is $9,819.11 $17,357.19 $19,357.08 250 days 26.

Find her proceeds  Find the proceed PC = 𝑀 −𝐷 � �=$20,000,𝐷 =

Faryal sold a note with a $20,000 maturity value, with a $1,575 discount.

$1,575 PC = 20,000 −1,575 =$18,425 Therefore, the proceed is $18,425 27.

Alle loomed Betty $3,000 for 200 days at 11% simple interest. Thirty days
later he sold the note to Gemma with a 15% simple discount rate. How

� =$3,000 ,𝑟 = 11% = 0.11 ,𝑇 = 200 365 𝐴 =3,000(1+0.11×200 365 )

much did Gemma pay for the note?  Find the amount � � =𝑃(1+𝑟𝑇) �

=$3,180  Find the Proceed PC = 𝑀(1−𝑑𝑇) Year � �=$3,180 ,𝑑 =

15%=0.15 ,𝑇 = 170 365 Pc = 3,180(1−0.15×170 365 =$2957,718 ) Year 28.
Virginia bomowed $3,500 for 100 days from Matta National Bank ot 8.43%
simple interest. Twenty days later, the bank sold the note to Po Financial at
a 7%simple discount rate, 25 days after that the note was sold to
NiVestment Corp with a 9.26% simple discount rate. What simple interest
rate did Virginia actually pay? 29. For the loon illustrated by the time line
shown below, determine the (a) proceeds, (b) maturity value, (c) simple
interest, and (d) simple discount. $25,000 $32,000 5/7/08  Find the

simple interest � � =𝑃𝑟𝑇 ↔𝑟= 𝐼 𝑃𝑇 𝑃 =$25,000 ,𝑇

proceed � � =$25,000  Find the Maturity � �=$32,000  Find the

=111/5=3.2=0.032 12/4/10 � � =𝑀−𝑃=32,000−15,000 =7,000 � �=

7,000 15,000×0.032 =14.58%  Find the simple discount �
�=𝑀−𝐷↔𝐷=𝑀−𝑃 � �=$32,000 ,𝑃=$15,000 � �=32,000−15,000
=$7,000 Therefore, the proceed is $25,000 the Maturity is $32,000 the
simple interest is 14.58% the simple discount is $7,000 30. A $50,000
maturity value rate with 100 days till maturity is sold at a 4.44% simple

�=$50,000 ,𝑑=4.44%=0.0444 ,𝑇=100 365 𝐷=𝑀𝑑𝑇

discount rate. Find the proceeds  Find the proceed PC=𝑀−𝐷 �

𝐷=50,000×0.0444×100 365 =$616.67 PC=50,000−616.67 =$49,383.33

Therefore, the proceeds is $49,383.33 31. A $10,000 maturity value note is

remaining term?  Find the Note Remaining Term � �=𝑀×𝑑×𝑇↔𝑇= 𝐷

sold for $9,899.43 with a 6.57% simple discount rate. What is the note's

𝑀𝑑 � �=$10,000 ,𝑑=6.57%=0.0657 ,𝑃=$9,899.43 �

�=𝑀−𝑃=10,000−9,899.43 = $100.57 � �=100.57 10,000×0.0657
=0.1531×365 =55𝑑𝑎𝑦𝑠 Therefore, the Note Remaining Term is 55days 32.
A $10,000 maturity value note is sold for $9,899.43 with a 6.57% simple
discount rate. What is the equivalent simple interest rate? (Hint: Use the

�=𝑃×𝑟×𝑇↔𝑟= 𝐼 𝑃𝑇 � �=$100.57 ,𝑃=$9,899.43 ,𝑇=0.1531𝑌𝑒𝑎𝑟 �

answer to Exercise 31.)  Find the Equivalent simple interest �

�= 100.57 9,899.43×0.1531 =0.0664=6.64% Therefore, the simple interest

is 6.64% 33. Jessamyn is due on $824.15 tax refund, which she expects to
receive on April 30. On March 17 her tax preparer offered to buy this refund
by giving her $800 on the spot. What is the simple discount rate for this

�=𝑀𝑑𝑇↔𝑑= 𝐷 𝑀𝑇 𝑃=$800 ,𝑇=30𝑑𝑎𝑦𝑠 (𝑓𝑟𝑜𝑚 𝑀𝑎𝑟𝑐ℎ 𝑡𝑜

offer? What is the simple interest rate?  Find the simple discount rate �

𝐴𝑝𝑟𝑜𝑙)= 30 365 Year � �=𝑀−𝑃=824.15−800=$24.15 � �= 24.15

824.15× 30 365 =0.356=3.56% Therefore, the simple discount rate is 3.56%
34. Austin is due to receive a commission check for $1,845.17 in 9 days. He
needs cash now. A business associate offers to give him cash now in
exchange for the check when it is received. Austin would have to give up a

offer?  Find the simple interest rate � �=𝑃𝑟𝑇↔𝑟= 𝐼 𝑃𝑇 �

fee of 1% of his check. What is the simple interest rate equivalent to this

�=$1,826.17 ,𝑇= 9 365 � �=𝐼−𝐴 � �=1%=0.01 ,𝐼=$1,826.17 �

�=0.01×1,826.1 =1,8.4517 � �=1,845.17−18.4517 =1,826.72 ↔𝑟=
18.4517 1,826.72× 9 360 =0.4095=40.95% Therefore, the simple interest is
40.95% 35. Jersey Shore Financial Funding made a $10,000 loan to a small
business for 300 days. The maturity value of the note was $10,850. Fifty
days later, Jersey Shore sold the note to the Bank of Shamokin Dam for
$9,795. What rate of simple discount was used for this secondary sale?

discount rate � � =𝑀𝑑𝑇↔𝑑= 𝐷 𝑀𝑇 𝐷 =𝑀− PC=10,850−9,795 =

What simple interest rate did the original lender earn?  Find the simple

$1,055 � � =(300−50) =250=250 365 𝑑 = 1,055 10,855 ×250 365 =14.19%

 Find the simple interest rate � � =𝐴−𝑃 Year � �𝑇 𝐴 = PC =
$9.795 ,𝑃 = $10,000 ,𝑇 = 50𝑑𝑎𝑦𝑠 = 50 𝑅 =9,795−10,000 10,000 × 50 365
=−0.1497 = −14.97% Therefore, the simple discount rate is 14.19% The
simple interest rate is -14.97%