a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%. b. Determine the proceeds of the note, assuming the note is discounted at 9%.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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On January 26, Elegant Co. borrowed cash from Conrad Bank by issuing a 90-day note with a face amount of $64,800. Assume a 360-day year.
a. Determine the proceeds of the note, assuming the note carries an interest rate of 9%.
b. Determine the proceeds of the note, assuming the note is discounted at 9%.
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