5. A 90-day note promises to pay 6,500 plus simple interest of 6 3/4%. It is disc 5% simple discount 20 days before maturity. Find the maturity value of the not roceeds of the sale.
5. A 90-day note promises to pay 6,500 plus simple interest of 6 3/4%. It is disc 5% simple discount 20 days before maturity. Find the maturity value of the not roceeds of the sale.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:16. A 90-day note promises to pay 6,500 plus simple interest of 6 3/4%. It is discounted at 5
4/5% simple discount 20 days before maturity. Find the maturity value of the note and the
proceeds of the sale.
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