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A Long Term Promissory Notes for $20 000 Is Signed

Question 15

Multiple Choice

A long term promissory notes for $20 000 is signed on April 15,2010.It is due on October 15,2013 at j2 = 6%.The maturity value of the note is $24 597.48.The note is sold on April 15,2011 to a bank that discounts the note at j4 = 8%.What are the proceeds?


A) $21,218.00
B) $20,582.07
C) $20,292.30
D) $20,178.50

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