Stphanie visited a financial institution and signed a 10-year, non-interest-bearing promissory note for $4000. She intends to give this to her son William, to partly fund his education. Due to unforeseen circumstances, the note is purchased after only 22 months at 3.34% compounded quarterly.

What is the selling price of the note (i.e. the proceeds)?

a.

$3331.28

b.

$3763.37

c.

$3917.71

d.

$3048.53