Problema Solution
a non interest bearing note is sold to a bank sixty days before maturity. the bank discount rate is 5%. if the seller receives 1342.35 from the bank. what is the face value of the note.
Answer provided by our tutors
the face value of the note is 1278.43
Solution： the the bank discount rate is 5%, the money received is 1342.35. set the value of the note is X. then X(1+5%)=1342.35, so the X=1278.43