A promissory note with a face value of $12,300 is written on February 22, 2015 and is due on June 03, 2022; it bears an interest rate of 11.5% compounded quarterly. The note is sold on January 04, 2021 to a bank that discounts notes at a compound interest rate of 4.5% compounded quarterly.

1. Determine the maturity value of the note. Include a time diagram.

2. Determine the amount that the bank paid for the note. Include a time diagram.

Answer rating: 100% (QA)

Step 1 1 Compound interestP1 rn nt Here p 12300 R115 N7... View the full answer