find the bank discount and proceeds if the face value is 250,000, discount rate is 9.65%, terms of discount is 12 months

To find the bank discount and proceeds, we'll use the following formulas:

### 1. **Bank Discount Formula**:
\[
\text{Bank Discount} = \text{Face Value} \times \text{Discount Rate} \times \text{Time}
\]

Where:
- **Face Value** = \$250,000
- **Discount Rate** = 9.65% = 0.0965
- **Time** = 12 months (or 1 year)

### 2. **Proceeds Formula**:
\[
\text{Proceeds} = \text{Face Value} - \text{Bank Discount}
\]

Let's compute these values:

#### Bank Discount:
\[
\text{Bank Discount} = 250,000 \times 0.0965 \times 1
\]

#### Proceeds:
\[
\text{Proceeds} = 250,000 - \text{Bank Discount}
\]

Now let's calculate.### Solution:
1. **Bank Discount** = \$24,125
2. **Proceeds** = \$225,875

These are the amounts based on a face value of \$250,000, a discount rate of 9.65%, and a discount period of 12 months.

Do you need any further details or explanations?

Here are some related questions:
1. What happens if the discount period is less than 12 months?
2. How does the discount rate affect the proceeds?
3. What are alternative methods to calculate the proceeds?
4. What would the proceeds be with a different face value?
5. How is the discount rate determined by banks?

**Tip**: Always check the time period in discounting problems; different time units may affect the calculations.

Find the bank discount and proceeds if the face value is 250,000, discount rate is 9.65%, terms of discount is 12 months.

Learn how to calculate the bank discount and proceeds for a face value of $250,000 at a 9.65% discount rate over 12 months. This financial mathematics problem covers the concepts of bank discount and proceeds calculation with step-by-step solutions. Suitable for students in Grades 10-12.

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