Question
Riverbed Inc. loans money to John Kruk Corporation in the amount of $816,000. Riverbed accepts an8% note due in7years with interest payable semiannually. After2years (and
Riverbed Inc. loans money to John Kruk Corporation in the amount of $816,000. Riverbed accepts an8% note due in7years with interest payable semiannually. After2years (and receipt of interest for2years), Riverbed needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of10% compounded semiannually. What is the amount Riverbed will receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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