# Math Help - accumulated and discounted value for a fractional period of time

1. ## accumulated and discounted value for a fractional period of time

The only question im not getting out of all my homework, all the other questions had close examples i could follow this ones a changeup couldnt figure it out

A note for $1200 dated Aug24,2005, is due with interest at j12=8.75% in 2 years. On June18,2006, the holder of the note has it discounted by a lender who charges 9.5% compounded quarterly. Calculate the proceeds and the compound discount. All help is appreciated 2. Originally Posted by teerplid The only question im not getting out of all my homework, all the other questions had close examples i could follow this ones a changeup couldnt figure it out A note for$1200 dated Aug24,2005, is due with interest at j12=8.75% in 2 years. On June18,2006, the holder of the note has it discounted by a lender who charges 9.5% compounded quarterly. Calculate the proceeds and the compound discount.
All help is appreciated
due in 2 years = f = 1200(1 + .0875/12)^24 : IF j12 means compounded monthly

Jun 18/06 to Aug 24/07 = 4 quarters plus 67 days, so 4+67/90 quarters : IF quarter = 90 days

proceeds = f / (1 + .095/4)^(4+67/90)

Can you wrap it up?

3. Thank you very much and yes i should be able to wrap it up now, nuthing in the textbook was showing me how to do the question was stuck on it for a while, thanks again