21.A 90-day, 15% interest bearing note was discounted to a bank at 18% after the note was held for 50 days. The proceeds received from the bank upon discounting would be the maturity value less a. maturity value less the discount at 18% for 50 days. b. maturity value less the discount at 18% for 40 days. c. maturity value less the discount at 15% for 50 days.
21.A 90-day, 15% interest bearing note was discounted to a bank at 18% after the note was held for 50 days. The proceeds received from the bank upon discounting would be the maturity value less a. maturity value less the discount at 18% for 50 days. b. maturity value less the discount at 18% for 40 days. c. maturity value less the discount at 15% for 50 days.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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21.A 90-day, 15% interest bearing note was discounted to a bank at 18% after the note was held for 50 days. The proceeds received from the bank upon discounting would be the maturity value less
a. maturity value less the discount at 18% for 50 days.
b. maturity value less the discount at 18% for 40 days.
c. maturity value less the discount at 15% for 50 days.
d. face value less the discount at 18% for 40 days.
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