Question: A note for $20000 dated June 1, 1991 is due in 3 years with compound interest at 13.5% compounded semi annually. on Dec 1, 1992

A note for $20000 dated June 1, 1991 is due in 3 years with compound interest at 13.5% compounded semi annually. on Dec 1, 1992 the holder of the note has it discounted by a lender who charges 15% compounded semi annually. what are the proceeds?

Step by Step Solution

★★★★★

3.49 Rating (152 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Due date of Note June 01 1994 No of times interest compounded Halfyearly 6 Date of Discounting Dec 1 ... View full answer

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!

A 150-day note with interest at 5% is dated June 28, 2016, and has a maturity value of $836.85. Find the face value of the note.

A 150-day note with interest at 5% is dated June 28, 2018 and has a maturity value of $836.85. Find the face value of the note.

A six-month note dated June 30 for $2900 bears interest at 13.5%. Determine the proceeds of the note if it is discounted at 9.75% on September 1.

A note for $20,000 dated June 1, 1991, is due in 3 years with compound interest at 13.5% compounded semiannually. On December 1, 1992, the holder of the note has it discounted by a lender who charges...

For question number 3, which method is correct? And why is it like that? Thanks. B. A note for $250 dated August 1, 2010, is due with compound interest at i = 9%, 4 years after date. On November 1,...

A note for $1000 dated January 1, 1993 is due with compound interest at 13% compounded semi annually five years after date.on July 1, 1994 Holder of the Note has it discounted by a lender who charges...

I need the following Answered. E3-3B E3-5B E3-8B E3-14B P3-8B P3-11B c03BExercises.qxd 12/7/12 10:30 AM Page 1 B EXERCISES 4 E3-1B (Transaction AnalysisService Company) Brown is a licensed CPA....

A note for S4000 dated September 1.2006, is due with compound interest 7.2%. 3 years after the date. On December 1, 2007, the holder of the note bus discounted by w lender who charges. 8%.. Depend on...

PowerPoint Assignment for BUS 401: Principles of Finance You have been asked by a manager in your organization to put together a training program explaining Net Present Value (NPV) and Future Value...

LEARNING COMPETENCIES After studying this module, you will be able to do the following: Find the amount of simple and compound interest; Ascertain exact, ordinary interest, maturity value, and simple...

Required information [The following information applies to the questions displayed below.] Church Company completes these transactions and events during March of the current year (terms for all its...

Indicate whether each of the following expenditure items should be classified as a function (F), organization unit (OU), activity (A), character (C), or object (O). Answer is complete and correct....

You recently attended an industry conference. While there, you met up with a friend Roni, who works for a competitor. During a break, Roni implies that if you could get your company to charge for a...

Consider a firm with an EBITDA of $1,100,000 and an EBIT of $1,000,000. The firm finances its assets with $4,550,000 debt (costing 8.3 percent, all of which is tax deductible) and 203,000 shares of...

Control: On a monthly basis, the financial analyst performs the reconciliation of the AR subledger system to the general ledger. All reconciling items in excess of US$15,000 are investigated and...

TB Problem Qu. 9-402 (Static) Hislop Tech is a for-profit vocational... Hislop Tech is a for-profit vocational school. The school bases its budgets on two measures of activity (i.e., cost drivers),...

After creating a set of keys using the elliptic curve algorithm with ssh - keygen, where the private key is stored by default? a . / etc / id _ rsa b . / etc / id _ ecdsa c . / . ssh / id _ rsa d . /...

The swap spread is the difference between the swap rate and the equivalent-maturity Treasury bond yield. Explain why a widening swap spread may be a signal of deteriorating economic conditions. Plot...

Solve each of the following equations. 1. -1/8x = 7 2. 3/5x = - 21 3. -4/3x = - 32 4. x - 3 = -7 5. -2x = 7 - 3x

On October 29, 2017, Toddlers' Toys borrowed money with a promise to pay $23 520.18 on March 5, 2018. This loan included interest at 6.5%. How much money did Toddlers' Toys borrow on October 29?

At auction on June 22, 2017, $100 000, 91-day treasury bills were sold for $99 600. An investor purchasing one of these T-bills held it for 40 days, then sold it to yield 1.4%. (a) What was the...

Gordon Company sponsors a defined benefit pension plan. The following information related to the pension plan is available for 2019 and 2020. Instructions a. Compute pension expense for 2019 and...

Using the information in E20.2, prepare a pension worksheet inserting January 1, 2019, balances, showing December 31, 2019, balances, and the journal entry recording pension expense. Service...

The following data relate to the operation of Kramer Co.'s pension plan in 2020. The pension worksheet for 2019 is provided in P20.10. Service...