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A Non-Interest Bearing Long Term Promissory Note Is Due on February

Question 112

Multiple Choice

A non-interest bearing long term promissory note is due on February 1,2011.The loan amount was $30,000.On October 15th,2010 the note was sold to a bank that charges interest at j12 = 12%.How much did the bank pay for this note? Assume the exact method is used for fractional time periods.


A) $28,959.25
B) $28,973.20
C) $28,977.85
D) $29,104.21

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