A Long Term Promissory Note Is Due on April 5,2013

A long term promissory note is due on April 5,2013.The maturity value of the note on that date is $4720.56.On June 7,2010,the holder of the notes sells it to a bank who discounts the note at j₂ = 14%.Using the practical method of crediting/charging interest,calculate the proceeds of the sale.

A) $3217.60
B) $3218.30
C) $3219.24
D) $3221.52

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free