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For question number 3, which method is correct? And why is it like that? Thanks. B. A note for $250 dated August 1, 2010, is
For question number 3, which method is correct? And why is it like that? Thanks.
B. A note for $250 dated August 1, 2010, is due with compound interest at i = 9%, 4 years after date. On November 1, 2011, the holder of the note has it discounted by a lender who charges i = 7.5% compounded annually. Determine the value of the note after 4 years. % oth "M og 127.5010 $250 ogolo Akls): 5250 (1.09 $278.43455 $278.43 12 743 de 0.025 1.075 AK (4): r.al alt) $278.43 (1-de $ 339.69512 I = $339.70 3) August 1, 2010 November, 2011 1 y 3 months = 1.25 yrs 4 A(4): 250(1+io) (1+36) 250 (141758) (1.075) $ 289.2496 R$ 229.25, B. A note for $250 dated August 1, 2010, is due with compound interest at i = 9%, 4 years after date. On November 1, 2011, the holder of the note has it discounted by a lender who charges i = 7.5% compounded annually. Determine the value of the note after 4 years. % oth "M og 127.5010 $250 ogolo Akls): 5250 (1.09 $278.43455 $278.43 12 743 de 0.025 1.075 AK (4): r.al alt) $278.43 (1-de $ 339.69512 I = $339.70 3) August 1, 2010 November, 2011 1 y 3 months = 1.25 yrs 4 A(4): 250(1+io) (1+36) 250 (141758) (1.075) $ 289.2496 R$ 229.25
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