1. Toyota Motor Corporation has faced tough times after losing production due to natural disasters. This, coupled with the yen’s appreciation against the dollar, has Toyota anticipating net profits 51% lower than last year. If Toyota had a ¥18,900 note at 2.5% interest for 360 days, what would Toyota’s proceeds be if it discounted the note on day 240 at 5%? (Round your final answer to the nearest yen.)
2. Hafers, an electrical supply company, sold $4,200 of equipment to Jim Coates Wiring, Inc. Coates signed a promissory note May 12 with 4.2% interest. The due date was August 10. Short of funds, Hafers contacted Charter One Bank on July 20; the bank agreed to take over the note at a 5.9% discount. (Use Days in a year table.)
What proceeds will Hafers receive? (Use 360 days a year. Do not round intermediate calculations. Round your final answer to the nearest cent.)
3. The Treasury Department auctioned $20 billion in 3-month bills in denominations of $10,000 at a discount rate of 4.500%.
What would be the effective rate of interest? (Use calendar year. Do not round intermediate calculations. Round your answer to the nearest hundredth percent.)
4. On July 14, Sheffield Company discounted at Sunshine Bank a $8,400 (maturity value), 121-day note dated April 8. Sunshine’s discount rate was 10%. (Use Days in a year table.)
What proceeds did Sheffield Company receive? (Use 360 days a year. Do not round intermediate calculations.)
5. Assume the $12,000 Treasury bill, 4% for 13 weeks. Calculate the effective rate of interest. (Use calendar year. Round your answer to the nearest hundredth percent.)