An interest bearing promissory note with a face value of 20,000 is to be charged interest at the rate of 9.5% p.a. and is due in 12 months.
(i)What would be the proceeds of the note if it is sold seven months after the issue date to yield the purchase a rate of 12%p.a.?
(ii)In the short time that the original holder held the note,what was the rate of interest earned by the original holder of the promissory note?

Please explain the question in detail with the help of formulas.