Using the interest bearing note illustration, let us compute the: a. maturity date b. maturity value c. If Mr. B sold the note to a banker, say Bank C, that means you have to find the value of the note from the day it was written to the day it was sold. Mr. B sold the note on March 7, 2010 at 10% discount rate, find the proceeds of Mr. B from the sale.
Using the interest bearing note illustration, let us compute the: a. maturity date b. maturity value c. If Mr. B sold the note to a banker, say Bank C, that means you have to find the value of the note from the day it was written to the day it was sold. Mr. B sold the note on March 7, 2010 at 10% discount rate, find the proceeds of Mr. B from the sale.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Using the interest bearing note illustration, let us compute the:
a. maturity date
b. maturity value
c. If Mr. B sold the note to a banker, say Bank C, that means you have to find the value of the note from the day it was written to the day it was sold. Mr. B sold the note on March 7, 2010 at 10% discount rate, find the proceeds of Mr. B from the sale.
Transcribed Image Text:Illustration of an Interest Bearing Note
December 7, 2009
P7,900
Six months after date, I promise to pay to the order of Mr. B the sum of seven thousand nine
hundred pesos (P7,900) at the rate of 9% per annum.
(signed) Mr. A
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