Question Solved1 Answer 1. Jolo holds a P32,000 simple interest note at 12%, which is payable at the end of a year, from Cecilia. If Jolo decides to sell the note 5 months after the origin date, how much will he receive if the discount interest rate is 14%?2. What is the proceeds of a P6,500 bank discount note that is payable at the end of 6 months but discounted after 3 months at 15% discount interest rate?

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1. Jolo holds a P32,000 simple interest note at 12%, which is payable at the end of a year, from Cecilia. If Jolo decides to sell the note 5 months after the origin date, how much will he receive if the discount interest rate is 14%?

2. What is the proceeds of a P6,500 bank discount note that is payable at the end of 6 months but discounted after 3 months at 15% discount interest rate?
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Answer-1) Final value of the note at 12.5% simple interest = 32,000 * 1.12 = 35,840 Present value of $35,840 at discount interest rate of 14% = $35,840 / 1.14 = $31 ... See the full answer