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Albert Purchased Bonzo's Car for $500 Cash and a Non-Interest

Question 24

Multiple Choice

Albert purchased Bonzo's car for $500 cash and a non-interest bearing promissory note for $2,000 payable in two years. How much money can Bonzo expect to receive for the note if he immediately sells it to Corleone Finance Company at a discount rate of 30% compounded monthly?


A) $383
B) $2,616
C) $1,617
D) $1,400
E) $1,106

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