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Sophia receives an invoice for $3000 on May 31. The terms of the invoice are 2/10, 1/30. The annual simple interest rate is 3.5% and
Sophia receives an invoice for $3000 on May 31. The terms of the invoice are 2/10, 1/30. The annual simple interest rate is 3.5% and the daycount convention is ACT/365 a) If Sophia pays on (or before) June 10, how much does she pay? (2 decimal places) b) What is the annual simple discount rate? (5 decimal places, if your answer is 1.234% type 1.234 not 0.01234) c) What is the Present Value (at time t = 0) of paying 3000 on June 302 (2 decimal places) d) What is the Present Value (at time t = 0) of paying the amount you calculated in a) on June 10, (2 decimal places) e) Sophia should pay the invoice off on June 10, True
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