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1.Appleby's Store ordered eight washers at $420 each, less 15%, 8.33%, and seven dryers at $250 each, less 16.67%, 10%. They received an invoice dated Sep.29 with terms:5/8, 3/15 ROG. The goods were delivered on Oct.11.
a)what was the last day of the credit period?
2.A promissory note for $2000 was issued on September 15, 1998, with a term of five years. Interest was payable at 9% compounded yearly. The note was discounted on April 15, 2000 by a finance company at 12.5% compounded monthly.
a)calculate the proceeds of the discounting. (the answer is$3077.25 )
b)calculate the amount of the compound discount.(the answer is$1065.18)
3. Kim has two debts as follows:
i) A debt of $264.83 due today
ii) A debt arising from a loan that she took out eight months ago for $1500 with a term of two years and bearing interest at 10.3% compounded semiannually.
Kim wants to settle these obligations by making two equal payments, the first in four months, and the second in one year. Determine the amount of the equal payments if money is worth 7% compounded monthly. Use one year from now as the focal date.
(the answer is $1013.61)
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