Question: (1 point) A long term promissory note with a maturity value of $4870.56 is due on April 5, 2013. On June 7, 2010, the holder

(1 point) A long term promissory note with a maturity value of $4870.56 is due on April 5, 2013. On June 7, 2010, the holder of the notes sells it to a bank who discounts the note at j2 = 16%. Using the practical method, calculate the price the bank paid for the note. Answer: $ 3096.85

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

(1 point) A long term promissory note with a maturity value of $4870.56 is due on April 5, 2013. On June 7, 2010, the holder of the notes sells it to a bank who discounts the note at j2 = 14%. Using...

(1 point) A long term promissory note with a maturity value of $4910.56 is due on April 5, 2013. On June 7, 2010, the holder of the notes sells it to a bank who discounts the note at j2 = 12%. Using...

(1 point) A long term promissory note with a maturity value of $4800.56 is due on April 5, 2013. On June 7, 2010, the holder of the notes sells it to a bank who discounts the note at j2 = 16%. Using...

A long term promissory note with a maturity value of $4750.56 is due on April 5, 2013. On June 7, 2010, the holder of the notes sells it to a bank who discounts the note at j2 = 10%. Using the...

A long term promissory note with a maturity value of $ 4 8 1 0 . 5 6 is due on April 5 , 2 0 1 3 . On June 7 , 2 0 1 0 , the holder of the notes sells it to a bank who discounts the note at j 2 = 1 4...

Hello I need answer 1,3,6,7,9,11,14,17 & 21 Pls? JWCL543_ch14_01-06.qxd 6/4/11 8:36 AM Page 1 B EXERCISES 2 E14-1B (Classification of Liabilities) Presented below are various account balances of...

Problem 1 The following list of accounts and their balances represents the unadjusted trial balance of Alt Company at December 31, 2012: Cash $ 29,090 Equity Investments (trading) 60,000 Accounts...

Can't figure out how to calculate FIFO and LIFO for exercise 8-20 on page 15. Problem 3-1 (Part Level Submission) Listed below are the transactions of Yasunari Kawabata, D.D.S., for the month of...

Just confused about the question 1 and question 3. thanks a lot! Unit: ACC101 - Fundamentals of Accounting I Submission Date: 9-Dec-2016 before 5.00 pm Weighting: The assignment is worth 40% of the...

Determine a region whose area is equal to the given limit. Do not evaluate the limit. 10 20. lim -in 5 - in tan 21. lim

the same? 23) The electrostatic force between two objects with charge q1 and q2 depends on the electrostatic constant: 1 4TEO where 0 = 8.85 10-12 m is the permittivity constant associated with free...

Why are afults aged 6 5 and over diagnosed with diabetes over the last 5 years

10) For a bond that pays cash interest (i.e., not a zero coupon bond), YTM is (a) always equal to the coupon rate (b) always equal to the current yield (c) is always less than the coupon rate (d) can...

(Appendices) Megan, age 24, recently graduated from college. She was insured as a dependent under her fathers group health insurance policy, which provided coverage for her as a student until she...

(Appendices) The Social Security trust funds are invested in government securities that are both similar and dissimilar to other government securities available to the Public. LO4 a. Explain how the...

(Appendices) Ethics Some celebrities lend their names to products that later turn out to be ineffective or harmful to consumers. The celebrities are paid to endorse the product by claiming they have...