17. Walnut company received from a customer an 1-year, P200,000 note bearing annual interest of 8%. After holding the note for 8 months,Walnut discounted the note at a local bank at an effective rate of 12%. What is the maturity value of the note? a. 216,000 b. 169,500 c. 200,000 d. 226,000

17. Walnut company received from a customer an 1-year, P200,000 note bearing annual interest of 8%. After holding the note for 8 months,Walnut discounted the note at a local bank at an effective rate of 12%. What is the maturity value of the note? a. 216,000 b. 169,500 c. 200,000 d. 226,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

17. Walnut company received from a customer an 1-year, P200,000 note bearing annual
interest of 8%. After holding the note for 8 months,Walnut discounted the note at a local
bank at an effective rate of 12%. What is the maturity value of the note?
a. 216,000
b. 169,500
c. 200,000
d. 226,000

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