Odom Company received from a customer a one-year, 250,000 note bearing annual interest of 8%. After Holding the note for six months, Odom discounted the note at Mbank at an effective interest rate of 10%. What amount of cash did Odom receive from the bank?
Odom Company received from a customer a one-year, 250,000 note bearing annual interest of 8%. After Holding the note for six months, Odom discounted the note at Mbank at an effective interest rate of 10%. What amount of cash did Odom receive from the bank?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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