An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a. If this note is sold after 75 days by discounting at a rate of 6.75% p.a., calculate the proceeds of the note. Round to the nearest cent

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
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Question 8 of 16
An interest-bearing promissory note for $5,500 is due in 180 days with simple interest
at 4.75% p.a. If this note is sold after 75 days by discounting at a rate of 6.75% p.a.,
calculate the proceeds of the note.
Round to the nearest cent
Transcribed Image Text:Question 8 of 16 An interest-bearing promissory note for $5,500 is due in 180 days with simple interest at 4.75% p.a. If this note is sold after 75 days by discounting at a rate of 6.75% p.a., calculate the proceeds of the note. Round to the nearest cent
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