A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was sold after 2 years. The buyer wanted a return of 5% compounded quarterly. What was the selling price of the note? Your Answer: Answer

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A: Principal (P) = $25,000Rate (R) = 8.6%Interest (I) = $10,750

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A: Part 2: Explanation:Step 1: Calculate the future value using the formula for compound interest:\[ FV…

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A: Given,  The loan amount is $13,000 Rate is 8 7/8%

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Q: the future value of an ordinary annuity

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A: Future Value = Present Value * (1+r)^n

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