1.As payment for services, Pat Chard held a 90- day, 8% note for $3,600 that was dated April 20.

1.As payment for services, Pat Chard held a 90- day, 8% note for $3,600 that was dated April 20. On June 5, Pat took the note to a financial services company, which bought the note at a 13% discount rate.

Interest amount (3 pts)

Maturity value (2 pts)

Maturity date (2 pts)

Days of discount (2 pts)

Discount amount (3 pts)

Proceeds (2 pts)

2.Joslin Builders received a 135-day, 7% note dated October 11. The face value was $12,450, which was for remodeling a client’s garage. On December 20, Joslin sold the note to McGraw Lending Corp.,which discounted the note at 12%. Interest amount (3 pts)

Maturity value (2 pts)

Maturity date (2 pts)

Days of discount (2 pts)

Discount amount (3 pts)

Proceeds (2 pts)