Simple Discount Calculations
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Questions and Answers

What is the formula to calculate the discount value?

  • D = Sdt (correct)
  • D = Pt
  • D = Pt - S
  • D = St

What is the nominal value of the loan in the first example?

  • $900
  • $1052.5
  • $1000 (correct)
  • $1100

What is the discount rate in the second example?

  • 11.52% (correct)
  • 12%
  • 10%
  • 15%

What is the present value of the loan in the first example?

<p>$1000 (A)</p> Signup and view all the answers

What is the discount value in the second example?

<p>$48 (A)</p> Signup and view all the answers

What is the time in years in the first example?

<p>5 years (D)</p> Signup and view all the answers

What is the result of the calculation (July 10 + 5 months) - October 18?

<p>53 days (B)</p> Signup and view all the answers

What is the duration of the remaining time?

<p>about 7 weeks (A)</p> Signup and view all the answers

What is July 10 plus 5 months?

<p>November 10 (C)</p> Signup and view all the answers

What is the difference between the maturity date and October 18?

<p>53 days (B)</p> Signup and view all the answers

What operation is performed to find the remaining time?

<p>subtraction (A)</p> Signup and view all the answers

What is the result of applying a 15% discount rate to a loan?

<p>$1034.95 (B)</p> Signup and view all the answers

What is the value of the loan after 15 years with an interest rate of 15%?

<p>$1034.95 (D)</p> Signup and view all the answers

If S is the nominal value of the loan, what is the formula to calculate the present value P after n years with an interest rate of i?

<p>P=S(1-it)^(-n) (C)</p> Signup and view all the answers

What is the present value of a loan after a 15% discount rate has been applied?

<p>$1034.95 (B)</p> Signup and view all the answers

What is the effect of a 15% discount rate on a loan?

<p>Decreases the present value (A)</p> Signup and view all the answers

What is the formula to find the maturity value of the note?

<p>S= P(1 + it) (B)</p> Signup and view all the answers

What is the principal amount of the note?

<p>$1000 (C)</p> Signup and view all the answers

What is the interest rate of the note?

<p>14% (D)</p> Signup and view all the answers

What is the maturity value of the note?

<p>$1058.33 (D)</p> Signup and view all the answers

What is the discount value of a loan with a nominal value of $100, a discount rate of 6%, and a time period of 5 years?

<p>$22.5 (C)</p> Signup and view all the answers

What is the present value of a loan with a nominal value of $240, a discount rate of 6%, and a time period of 6 years?

<p>$522.2 (B)</p> Signup and view all the answers

What is the discount rate of a loan with a nominal value of $100, a discount value of $22.5, and a time period of 5 years?

<p>6% (B)</p> Signup and view all the answers

What is the time period of a loan with a nominal value of $100, a discount value of $25.5, and a discount rate of 6%?

<p>5 years (A)</p> Signup and view all the answers

What is the nominal value of a loan with a present value of $522.2, a discount rate of 6%, and a time period of 5 years?

<p>$100 (C)</p> Signup and view all the answers

What is the discount value of a loan with a nominal value of $3835, a discount rate of 6.3%, and a time period of 3 years?

<p>$1000 (A)</p> Signup and view all the answers

What is the present value of a loan with a nominal value of $3835, a discount rate of 6.3%, and a time period of 3 years?

<p>$2835 (A)</p> Signup and view all the answers

What is the discount rate of a loan with a nominal value of $3835, a discount value of $1000, and a time period of 3 years?

<p>6.3% (D)</p> Signup and view all the answers

What is the time period of a loan with a nominal value of $3835, a discount value of $1000, and a discount rate of 6.3%?

<p>3 years (C)</p> Signup and view all the answers

What is the nominal value of a loan with a present value of $2835, a discount rate of 6.3%, and a time period of 3 years?

<p>$3835 (A)</p> Signup and view all the answers
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