Question: A promissory note for $8,000 with a simple interest rate of 9% is written on January 17, 2020 and is due on June 28,

A promissory note for $8,000 with a simple interest rate of 9%

A promissory note for $8,000 with a simple interest rate of 9% is written on January 17, 2020 and is due on June 28, 2020. Suppose that on May 10, 2020 the holder of the note sells it to a bank that discounts notes at a simple interest rate of 10.5%. a. Draw a time diagram representation of the situation. b. Determine the maturity value of the promissory note. c. How much does the bank spend on the promissory note? d. What interest rate (as a percent to 2 decimals) does the seller realize on his/her investment when sold on May 10, 2020?

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