Given:
Bank discount formula:
Interest/Discount = Face Value/Principal * Rate * term
Maturity Value = Face Value/Principal
Proceeds = Maturity Value - Bank Discount
2) Face Value = 9,700 ; Discount Rate = 9.5% ; Term = 135 days
Discount = 9,700 * 0.095 * 135/360
Discount = 345.56
Proceeds = 9,700 - 345.56 = 9,354.44
3) Face Value = 15,600 ; Discount rate = 7.25% ; Term = 270 days
Discount = 15,600 * 0.0725 * 270/360
Discount = 848.25
4) Proceeds = 15,600 - 848.25 = 14,751.75
