Question
3. Jeremey Grey loans Gary Grobowski $550,000. Grey accepts a 4% note, which requires semiannual interest payments for 10 years. The day after receiving the
3. Jeremey Grey loans Gary Grobowski $550,000. Grey accepts a 4% note, which requires semiannual interest payments for 10 years. The day after receiving the 4th interest payment, Grey decides to sell the note to Dedham Savings Bank. Dedham Savings Bank agrees to purchase it to yield a 6% return. a. What is the amount that Jeremy Grey will receive on the sale of the note to Dedham Savings Bank? b. Prepare the entries that Jeremey Grey and Dedham Savings Bank will make on the day the note is sold to the bank. c) Please prepare the amortization schedule.
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