Question: 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

For question number 3, which method is correct? And why is it like that? Thanks.

For question number 3, which method is correct? And why is it

like that? Thanks. B. A note for $250 dated August 1, 2010,

B. A note for $250 dated August 1, 2010, is due with compound interest at i = 9%, 4 years after date. On November 1, 2011, the holder of the note has it discounted by a lender who charges i = 7.5% compounded annually. Determine the value of the note after 4 years. % oth "M og 127.5010 $250 ogolo Akls): 5250 (1.09 $278.43455 $278.43 12 743 de 0.025 1.075 AK (4): r.al alt) $278.43 (1-de $ 339.69512 I = $339.70 3) August 1, 2010 November, 2011 1 y 3 months = 1.25 yrs 4 A(4): 250(1+io) (1+36) 250 (141758) (1.075) $ 289.2496 R$ 229.25, B. A note for $250 dated August 1, 2010, is due with compound interest at i = 9%, 4 years after date. On November 1, 2011, the holder of the note has it discounted by a lender who charges i = 7.5% compounded annually. Determine the value of the note after 4 years. % oth "M og 127.5010 $250 ogolo Akls): 5250 (1.09 $278.43455 $278.43 12 743 de 0.025 1.075 AK (4): r.al alt) $278.43 (1-de $ 339.69512 I = $339.70 3) August 1, 2010 November, 2011 1 y 3 months = 1.25 yrs 4 A(4): 250(1+io) (1+36) 250 (141758) (1.075) $ 289.2496 R$ 229.25

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!