document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=1193314>Question 1193314</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Please help me with the homework.\r<BR>\n" );
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document.write( "A promissory note dated 1 April 2021 for 1500, borrowed at a simple discount rate of 16% p.a. due on the 1 October 2021 is sold on the 1 July 2021.<BR>\n" );
document.write( "1.1. what is the maturity value of the note?<BR>\n" );
document.write( "1.2. what is the present value on the date of sale? </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #848660 by </B><A HREF=/tutors/aboutme.mpl?userid=yurtman><B>yurtman(42)</B></A><img src=\"/images/stars/stars-07.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=yurtman><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=848660\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> **1.1. Calculate Maturity Value**\r<BR>\n" );
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document.write( "* **Find the discount period:** <BR>\n" );
document.write( "    * Maturity Date: October 1, 2021<BR>\n" );
document.write( "    * Issue Date: April 1, 2021<BR>\n" );
document.write( "    * Discount Period: 6 months \r<BR>\n" );
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document.write( "* **Calculate discount amount:**<BR>\n" );
document.write( "    * Discount = Principal * Discount Rate * Time <BR>\n" );
document.write( "    * Discount = 1500 * 0.16 * (6/12) <BR>\n" );
document.write( "    * Discount = 120\r<BR>\n" );
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document.write( "* **Calculate maturity value:**<BR>\n" );
document.write( "    * Maturity Value = Principal - Discount<BR>\n" );
document.write( "    * Maturity Value = 1500 - 120 <BR>\n" );
document.write( "    * Maturity Value = 1380\r<BR>\n" );
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document.write( "**1.2. Calculate Present Value on the Date of Sale**\r<BR>\n" );
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document.write( "* **Find the time remaining to maturity:**<BR>\n" );
document.write( "    * Maturity Date: October 1, 2021<BR>\n" );
document.write( "    * Sale Date: July 1, 2021<BR>\n" );
document.write( "    * Time Remaining: 3 months\r<BR>\n" );
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document.write( "* **Calculate the discount from the sale date to maturity:**<BR>\n" );
document.write( "    * Discount from Sale Date = Maturity Value * Discount Rate * Time <BR>\n" );
document.write( "    * Discount from Sale Date = 1380 * 0.16 * (3/12) <BR>\n" );
document.write( "    * Discount from Sale Date = 55.20\r<BR>\n" );
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document.write( "* **Calculate present value on the date of sale:**<BR>\n" );
document.write( "    * Present Value = Maturity Value - Discount from Sale Date<BR>\n" );
document.write( "    * Present Value = 1380 - 55.20 <BR>\n" );
document.write( "    * Present Value = 1324.80\r<BR>\n" );
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document.write( "**Therefore:**\r<BR>\n" );
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document.write( "* **1.1. Maturity Value:** 1380<BR>\n" );
document.write( "* **1.2. Present Value on the Date of Sale:** 1324.80<BR>\n" );
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