When discounted to yield 10.5% compounded monthly, a $2600 three-year promissory note bearing interest at 12.25% compounded

Question:

When discounted to yield 10.5% compounded monthly, a $2600 three-year promissory note bearing interest at 12.25% compounded annually was priced at $3283.57. How many months after the issue date did the discounting take place?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Business Mathematics In Canada

ISBN: 978-0070009899

7th edition

Authors: Ernest Jerome

See More Books

Question Posted: Jan 20, 2016 07:32 AM

See More Questions

When discounted to yield 9.5% com- pounded quarterly, a $4500 four-year promissory note bearing interest at 11.5% compounded semi- annually was priced at $5697.84. How long after the issue date did...
The proceeds from the sale of a $4500 five-year promissory note bearing interest at 9% compounded quarterly were $6055.62. How many months before its maturity date was the note sold if it was...
Conrad has two loans outstanding, which he can repay at any time. He has just made the eleventh monthly payment on an $8500 loan at 10.5% compounded monthly for a three-year term. The twenty-second...
Limits from graph In this problem we evaluate limits from the graph. Consider the graph of f given in [Figure 1]. Evaluate each of the following limits (or explain why if the limit does not exist)....
On January 1, 2009, Push Company purchased an 80% interest in the capital stock of Way Down Company for $820,000. At that time, WayDown Company had capital stock of $500,000 and retained earnings of...
Draw all possible isomers for the molecule C3H5Br.
Without revealing the name of your employer, comment on the efforts of your employer to promote a work environment in which employees are encouraged to act ethically.
At the end of 2014, Frontier Corporation has $360,000 of cumulative temporary differences that will result in reporting future taxable amounts as follows. 2015 ......... $105,000 2016 .........90,000...
Can the classification of a cost as direct or indirect change within an organisation?
Speed World Cycles sells high-performance motorcycles and motocross racers. One of Speed World's most popular models is the Kazomma 900 dirt bike. During the current year, Speed World purchased eight...
Rounded to the nearest month, how long will it take money to lose 25% of its purchasing power if the annual rate of inflation is: a. 2%? b. 4%?
A $4000 loan at 7.5% compounded monthly was settled by a single payment of $5000 including accrued interest. Rounded to the nearest day, how long after the initial loan was the $5000 payment made?...
Is he a caustic coworker and if so what can be done with him?
Nelsie Corporation has an outstanding 60-day 6% note receivable amounting to P 15,000 dated December of the ne year. The company is using the calendar year in preparing its financial statements. What...
Which resource is the bottleneck? What is the overall capacity of the orthopedist's office in patients/hour?
What are the comprehensive strategic implentation issues of Kmart with reference
1. Create both the written plan and the educational material to help African American women age 65+ control high blood pressure, take the special circumstances into consideration for the plan. 2. For...
Write down D & S equations for wireless phones; include two exogenous variables in each equation.
Bank X gives 20 loans of $100,000 each, a total of $2,000,000 to company A. At initial recognition, the expected loss rate based on historical trend for company A is one default in the first year,...
Evaluate the integral, if it exists. Jo y(y + 1) dy
On the basis of the following data, determine the value of the inventory at the lower of cost or market. Apply lower of cost or market to each inventory item as shown in Exhibit 7.objs. 4, 5...
Find the future values of the following ordinary annuities: a. FV of $400 each 6 months for 5 years at a nominal rate of 12 percent, compounded semiannually. b. FV of $200 each 3 months for 5 years...
(2-11) Universal Bank pays 7 percent interest, compounded annually, on time deposits. Regional Bank pays 6 percent interest, compounded quarterly. a. Based on effective interest rates, in which bank...
a. Set up an amortization schedule for a $25,000 loan to be repaid in equal installments at the end of each of the next 5 years. The interest rate is 10 percent. b. How large must each annual payment...
Columbus Industries makes a product that sells for $37 a unit. The product has a $29 per unit variable cost and total fixed costs of $10,000. At budgeted sales of 1,950 units, the margin of safety...
18. Suppose that Maxima shares are selling for $10 per share and you own a call option to buy Maxima shares at $7.50. The intrinsic value of your option is:
ABC Insurance Company reported the following information on its accounting statements last year: What was ABC 's expense ratio last year

When discounted to yield 10.5% compounded monthly, a $2600 three-year promissory note bearing interest at 12.25% compounded

Question:

Step by Step Answer:

Discounted price 328357 The number of compounding periods ...View the full answer

Business Mathematics In Canada

Students also viewed these Accounting questions