Interest = F×d×t
where F= Final amount
d= discount rate
t= time(in years)
given- F=10500, d=10%= 0.1, t=12/12 =1 yr
i = 10500 × 0.1 × 1
= 1050
Proceeds(pr) = F - i
where F = Final amount
i = interest
pr = 10500 - 1050 = 9450 → final answer
What are the proceeds of a note for $10,500 at a discount rate of 10%, for 12 months?
