120-day promissory note for $50,000 bears interest at r = 10%. It is sold 90-days before the...

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120-day promissory note for $50,000 bears interest at r = 10%. It is sold 90-days before the maturity date to a bank that discounts the note at r = 15%. If there is a 3 days of grace and using the exact time, what does the bank pay for the note?

Related Book For answer-question

Financial Accounting

ISBN: 978-0134725987

12th edition

Authors: C. William Thomas, Wendy M. Tietz, Walter T. Harrison Jr.

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Posted Date: Oct 17, 2020 08:01 PM

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120-day promissory note for $50,000 bears interest at r = 10%. It is sold 90-days before the...

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Financial Accounting

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