A building contractor gives a $12,000 promissory note to a plumber who has loaned him $12,000. The note is due in 9 months with interest at 6%. Three months after the note is signed, the plumber sells it to a bank. If the bank gets a 8% return on its investment, how much will the plumber receive? Will it be enough to pay a bill for $12,115? How much will the plumber receive? $ (Round to the nearest cent as needed.) Will it be enough to pay a bill for $12,115?
A building contractor gives a $12,000 promissory note to a plumber who has loaned him $12,000. The note is due in 9 months with interest at 6%. Three months after the note is signed, the plumber sells it to a bank. If the bank gets a 8% return on its investment, how much will the plumber receive? Will it be enough to pay a bill for $12,115? How much will the plumber receive? $ (Round to the nearest cent as needed.) Will it be enough to pay a bill for $12,115?
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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Transcribed Image Text:A building contractor gives a $12,000 promissory note to a plumber who has loaned him $12,000. The note is due in 9
months with interest at 6%. Three months after the note is signed, the plumber sells it to a bank. If the bank gets a
8% return on its investment, how much will the plumber receive? Will it be enough to pay a bill for $12,115?
How much will the plumber receive?
$
(Round to the nearest cent as needed.)
Will it be enough to pay a bill for $12,115?
O A. Yes
O B. No
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