SOLVED: A promissory note will pay 47,000 at maturity 9 years from noW: If you pay24,000 for the note now; what rate compounded continuously would you earn?The investment would earn about % compounded continuously: (Round to three decimal places as needed:)
SOLVED: A promissory note will pay 47,000 at maturity 9 years from no…
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Answered: The following interest-bearing promissory note was discounted at a bank by the payee before maturity. Use the ordinary interest method, 360 days, to calculate… | bartleby
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A promissory note is a written statement agreeing to pay a sumof money either on demand or at a definite future time. When a noteis purchased for its present value at a given interest rate,the note is said to be discounted and the interest rate is calledthe discount rate. Suppose a10,000note due9years from now is sold to a financial institution for6200.What is the nominal discount rate withquarterly compounding?
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