# SOLUTION: An investment company owns a 10-year, 6% simple interest note that has a face value of \$50,000. A bank agrees to purchase the note 3 years before it is due by discounting it a 9%.

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 Question 174221: An investment company owns a 10-year, 6% simple interest note that has a face value of \$50,000. A bank agrees to purchase the note 3 years before it is due by discounting it a 9%. Find the maturity value of the note, the discount, and the proceeds.Answer by Mathtut(3670)   (Show Source): You can put this solution on YOUR website!I=50000(.06)(10)=30000 : Maturity Value=80000 : discount equals 80000(.09)(3)=21600 : proceeds are 80000-21600=58400