• You signed a $19,000, two-year promissory note bearing interest at 13% compounded semiannually to help pay for your college education. At the one year mark, the promissory note was sold for $22,925. What monthly compounded discount rate was used in pricing the note?

• Transville Credit Union is offering interest rates on three-year GICs. The effective rate of all of the accounts is 2.5%. What is the monthly, quarterly and semi-annually compounded rates that are quoted?

Answer rating: 100% (QA)

Promissory Note Discount Rate We can solve this problem by working backward to find the discount rate Heres how Future Value We know the original prin... View the full answer