• The proceeds from the sale of a $3500 four-year promissory note bearing interest at 5% compounded quarterly were $3612.31. The note was discounted to yield 6.8% compounded semiannually. How many months before maturity was the note sold?
• Rounded to the nearest month, how long will it take money to lose 25% of its purchasing power if the annual rate of inflation is:

a) 2%?

b) 4%?

Answer rating: 100% (QA)

We can ignore the first part of the question about the promissory note as its not relevant to the se... View the full answer