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On November 8, 2012 Cash Co. signed an interest-bearing promissory note, due on May 15, 2013, for $40,000 at an interest rate of 4.54%. The
On November 8, 2012 Cash Co. signed an interest-bearing promissory note, due on May 15, 2013, for $40,000 at an interest rate of 4.54%. The company sold the promissory note 38 days later to Mammoth Inc. at a price that would yield 5.00% p.a. a. What was the maturity value of the interest-bearing promissory note? Round to the nearest cent. b. How much did Mammoth Inc. pay for the note? Round to the nearest cent. On November 8, 2012 Cash Co. signed an interest-bearing promissory note, due on May 15, 2013, for $40,000 at an interest rate of 4.54%. The company sold the promissory note 38 days later to Mammoth Inc. at a price that would yield 5.00% p.a. a. What was the maturity value of the interest-bearing promissory note? Round to the nearest cent. b. How much did Mammoth Inc. pay for the note? Round to the nearest cent
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