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</p> Signup and view all the answers

    What is the discount value in the second example?

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

    What is the time in years in the first example?

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

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

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

    What is the duration of the remaining time?

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

    What is July 10 plus 5 months?

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

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

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

    What operation is performed to find the remaining time?

    <p>subtraction</p> Signup and view all the answers

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

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

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

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

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

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

    What is the principal amount of the note?

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

    What is the interest rate of the note?

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

    What is the maturity value of the note?

    <p>$1058.33</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</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</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%</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</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</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</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</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%</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</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</p> Signup and view all the answers

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