lender and borrower

[logistic_guy]

A lender loaned a borrower \(\displaystyle \$ 750\) on May \(\displaystyle 8\), and the borrower repaid the loan by giving the lender \(\displaystyle \$ 800\) on June \(\displaystyle 10\).

Find \(\displaystyle \bold{(a)}\) the maturity value, \(\displaystyle \bold{(b)}\) the proceeds, and \(\displaystyle \bold{(c)}\) the amount of discount.

 

[jonah2.0]

Beer drenched fake gratitude follows.

A lender loaned a borrower \(\displaystyle \$ 750\) on May \(\displaystyle 8\), and the borrower repaid the loan by giving the lender \(\displaystyle \$ 800\) on June \(\displaystyle 10\).

Find \(\displaystyle \bold{(a)}\) the maturity value, \(\displaystyle \bold{(b)}\) the proceeds, and \(\displaystyle \bold{(c)}\) the amount of discount.

Solved. Thank you for that thought-provoking, intellectually invigorating mental exercise.

 

[logistic_guy]

Solved. Thank you for that thought-provoking, intellectually invigorating mental exercise.

Good boy. I knew you could do it.

Don't underestimate the power of this basic problem. It is the core of understanding later the dark side forest of Finance!

 

[jonah2.0]

Beer drenched reaction follows.

Good boy. I knew you could do it.

Don't underestimate the power of this basic problem. It is the core of understanding later the dark side forest of Finance!

I was being sarcastic.
Didnt you notice my "Beer drenched fake gratitude follows." disclaimer?

 

[logistic_guy]

Find \(\displaystyle \bold{(a)}\) the maturity value, \(\displaystyle \bold{(b)}\) the proceeds, and \(\displaystyle \bold{(c)}\) the amount of discount.

\(\displaystyle \bold{(a)}\) the maturity value \(\displaystyle = \textcolor{green}{\$800}\)
\(\displaystyle \bold{(b)}\) the proceeds \(\displaystyle = \textcolor{blue}{\$750}\)
\(\displaystyle \bold{(c)}\) the amount of discount \(\displaystyle = \textcolor{red}{\$50}\)