Question
1.) A. a non-interest bearing promissory note for $1939.00 was discounted at 3% p.a. compounded monthly. If the proceeds of the note were $1754.00, how
1.)
A. a non-interest bearing promissory note for $1939.00 was discounted at 3% p.a. compounded monthly. If the proceeds of the note were $1754.00, how long before the due date was the note discounted? State your answer in years and months (from 0 to 11 months).
The note was discounted ____________ year(s) and ________ month(s) before the due date.
B. Determine the number of compounding periods for the following investment.
Principal | Future Value | Interest Rate | Frequency of Conversion |
$1092 | $1304 | 6.6% | monthly |
The number of compounding periods is______
C. Find the proceeds of the following promissory note. A nine-year promissory note dated July 1, 2014,
with a face value of $2200.00 bearing interest at 3.7% compounded monthly, discounted three years
later when money was worth 3% compounded quarterly.
The proceeds of the note are $________
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