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A Promissory Note with a Maturity Value of $20,000 Is

Question 72

Multiple Choice

A promissory note with a maturity value of $20,000 is sold to a bank 32-months before maturity.The bank discounts the note using j2 =16%.What are the proceeds,if the practical method is used?


A) $13,275.57
B) $13,258.11
C) $13,266.92
D) $12,939.48

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