You have today (11/02/2019) an IOU for $100,000 (someone owes you money). The issue date was 10/10/2019

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You have today (11/02/2019) an IOU for $100,000 (someone owes you money). The issue date was 10/10/2019 and the IOU's duration was set to 120 days.

You need cash now and a bank offers you a discount rate of 5% annual (compounded). How much money should you receive?

What is the discount?

Related Book For answer-question

Accounting Information System

ISBN: 9781439078570

7th Edition

Authors: James A. Hall

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Posted Date: Jul 10, 2023 02:29 AM

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You have today (11/02/2019) an IOU for $100,000 (someone owes you money). The issue date was 10/10/2019

Question:

Expert Answer:

First lets calculate the number of days from the issue date 10102019 to the current date 11022019 Nu... View the full answer

Accounting Information System

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