Question
Bob signs a note promising to pay Marie $4000 in 8 years at 8% compounded monthly. Then, 148 days before the note is due, Marie
Bob signs a note promising to pay Marie $4000 in 8 years at 8% compounded monthly. Then, 148 days before the note is due, Marie sells the note to a bank which discounts the note based on a bank discount rate of 14%. How much did the bank pay Marie for the note?
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Finance For Non Financial Managers
Authors: Pierre G. Bergeron
5th Edition
0176104070, 9780176104078
