FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

3.95 An investor lends 5000 and receives a promissory note promising repayment of the loan in 90 days with 12% simple interest. This note is

image text in transcribed
3.95 An investor lends 5000 and receives a promissory note promising repayment of the loan in 90 days with 12% simple interest. This note is immediately sold to a bank which charges 10% simple interest. (a) How much does the bank pay for the note? (b) What is the investor's profit? (c) What is the bank's profit on this investment when the note maturen? Ans.(a) $5024.39; (b) $24.39; (c) $125.61

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Swing And Position Trading For Beginners Easy To Learn High Profit Method For Beginners

Swing And Position Trading For Beginners Easy To Learn High Profit Method For Beginners

Authors: J.r. Lira

1st Edition

1542338522, 978-1542338523

More Books

Students also viewed these Finance questions

Question

★★★★★
Apply source transformation to determine vo and io in the circuit in Fig. 4.89. 12 V F 2A

Answered: 1 week ago

Question

★★★★★
Suppose the current YTM for the floating rate coupon bond is 4% pa. If the floating coupon bond pays coupon semi-annually, what is the price of this bond if today is the issuance date A. $102 B. Par...

Answered: 1 week ago

Question

★★★★★
Discuss the most important elements that characterize the most successful efforts at integrating suppliers in new-product development. How do these factors contribute to success?

Answered: 1 week ago

Question

★★★★★
Sales for Ross Pros Sports Equipment are expected to be 4,800 units for the coming month. The company likes to maintain 10 percent of unit sales for each month in ending inventory . Beginning...

Answered: 1 week ago

Question

★★★★★
3.95 An investor lends 5000 and receives a promissory note promising repayment of the loan in 90 days with 12% simple interest. This note is immediately sold to a bank which charges 10% simple...

Answered: 1 week ago

Question

★★★★★
Sunset Travel Agency specializes in flights between Toronto and Jamaica. It books passengers on OshawaOshawa Air. SunsetSunset's fixed costs are $29,500 per month. OshawaOshawa Air charges passengers...

Answered: 1 week ago

Question

★★★★★
4. For a marketable debt securities portfolio classified as held-to-maturity, which of the following amounts should be included in the period's net income, assuming the company elects the fair value...

Answered: 1 week ago

Question

★★★★★
In this assignment, students will interview the representative of the nonprofit organization selected for the Community Teaching Project in Topic 1. During the interview, students will review their...

Answered: 1 week ago

Question

★★★★★
Bramble Company has two classes of capital stock outstanding: 8%, $20 par preferred and $5 par common. At December 31, 2025, the following accounts were included in stockholders' equity. Preferred...

Answered: 1 week ago

Question

★★★★★
PSY-520 Graduate Statistics Topic 3 - Benchmark - Correlation and Regression Project Directions: Use the following information to complete the questions below. Use the following data points that have...

Answered: 1 week ago

Question

★★★★★
Wonder land Ltd. operates a housing development project.There was a fire on its premises on 31 January 2019 which destroyed most of the building, although stock to the value of Sh.3,960,000 was...

Answered: 1 week ago

Previous Question Next Question