Annamarie Weymeyer held a $3,750, 120-day, non-interest-bearing note dated July 24. On August 16, she took the note to First Bank of the Plains which discounted the note at 10%. Use a 365-day year to find the missing information on the loan.
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Learning Objectives

• Figure out the rebate values and gains from a range of loan arrangements.
• Apply knowledge of non-interest-bearing notes and how they are discounted.
• Evaluate the authentic interest rate from proceeds as opposed to the face value, with the inclusion of different day counts (365-day and 360-day years).