Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. Compute the present value on the date of issue of a non-interest-bearing, worth $850 000, three-month promissory note dated September 1, 2013 (plus 3 days of grace), if money is worth 12.5% in Oman.

Question 4Select one:

A.

$823 490

B.

$877 363

C.

$26 510

D.

$847 272

E.

$824 311