Calculate how much allied bank loaned to the maker of note


Question: Allied Bank was the holder of a 3-month note dated June 18th with a discount rate of 12%. The face value was $10,000. On July 20th, Allied Bank rediscounted the note at Trusted Bank at 11%. Discuss how to calculate how much Allied Bank loaned to the maker of the note and how much Allied would receive when the note was rediscounted.

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Accounting Basics: Calculate how much allied bank loaned to the maker of note
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