FUTURE VALUES Fargo Transit Company invested $70,000 in a tax-anticipation note on June 30, 2009. The note
Question:
FUTURE VALUES Fargo Transit Company invested $70,000 in a tax-anticipation note on June 30, 2009.
The note earns 12 percent interest compounded monthly (1 percent per month) and matures on March 31, 2010.
Required:
. Prepare the cash flow diagram for this investment.
. Determine the amount Fargo will receive when the note matures.
. Determine how much interest Fargo will earn on this investment from June 30, 2009, through December 31, 2009.
Exercise
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ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen
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