6. An investor lends $5000 and receives a promissory note promising repayment of the loan in 90 days with 8.5% simple interest. This note is immediately sold to a bank that charges 8% simple interest. How much does the bank pay for the note? What is the investor's profit? What is the bank's profit on this investment when the note matures?
6. An investor lends $5000 and receives a promissory note promising repayment of the loan in 90 days with 8.5% simple interest. This note is immediately sold to a bank that charges 8% simple interest. How much does the bank pay for the note? What is the investor's profit? What is the bank's profit on this investment when the note matures?
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
Problem 1PS
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Question
Transcribed Image Text:MP
MT
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DS
CD
Simp
Conj
Add
DM
Com
Assoc
Dist
DN
Trans
Impl
Equiv
Exp
Taut
ACP
CP
AIP
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PREMISE
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PREMISE
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PREMISE
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4 Simp
PREMISE
6. An investor lends $5000 and receives a
promissory note promising repayment of the
loan in 90 days with 8.5% simple interest. This
note is immediately sold to a bank that charges
8% simple interest. How much does the bank pay
for the note? What is the investor's profit? What
is the bank's profit on this investment when the
note matures?
2.
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