Roth, Inc. received from a customer a one-year, $500,000 note bearing annual interest of 8%. After holding

Fantastic news! We've Found the answer you've been seeking!

Question:

Roth, Inc. received from a customer a one-year, $500,000 note bearing annual interest of 8%. After holding the note for six months, Roth discounted the note at Regional Bank at an effective interest rate of 10%. What amount of cash did Roth receive from the bank?

a. 513,000

b. 495,238

c. 523,810

d. 540,000