Question
A 120-day, 8% promissory note with face value of $15,000 issued on May 1, 2012 was sold on August 5, 2012 while the cost of
A 120-day, 8% promissory note with face value of $15,000 issued on May 1, 2012 was sold on August 5, 2012 while the cost of money is 4%. 1When is thematurity date of the promissory note?(Answer in format of date is MM/DD/YYYY) 2What is the maturity value of the promissory note? 3What is the price the note was sold on August 5, 2012? 4What is the profit did the note holder get from selling the note? 5What is the interest rate did the note holder earn from selling the note? 6If the buyer cash the note on the maturity date, how much profit did the buyer earn?
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