Lawrence signs a note promising to pay Justin $2500 at 11.25% compounded monthly in 7 years. However, 6 months before maturity, Justin sells the note to Angela who discounts the note on 17.25% bank discount rate. a. Find the maturity value of the note. b. How much did Justin receive from the sale of the note toAngela? $

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A:

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Q: 1. Robert borrowed a certain sum of money from Joey on June 1, 1994 and signed a note promising to…

A: A promissory note is a financial instrument that is issued on a current date with a promise to pay a…

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A: Present Value:  The present value (PV) is the present sum of the future payments. The future…

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A: The problem actually pertains to the determination of the YTM or yield to maturity. YTM  means the…

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A: Solution:- When an interest bearing note is purchased, it provides interest to the holder. So,…

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A: Present Value = pv = $10,000 Future value = fv = $10,500 Time = t = 1 / 12

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Q: Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed…

A: Given: Principal “P” = $500 Simple rate = 9% Number of years “t” = 11

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A: a)  Computation: Hence, the future value is $201.50.

Q: On August 1, Rachael Westlake joined a Christmas Club. Her bank will automatically deduct $120 from…

A: The present value of the given annuity: The present value of the annuity due in the future is the…

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Q: Assume simple interest and find the rate of interest paid by the bank.

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Q: Amy Lee held a $3,200 105-day note dated July 7, bearing interest at 9.6%. On August 11, Amy took…

A: Therefore, the interest amount will be $88.37.

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A: future value formula: future value = present value×1+rateyear

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A: Present value is calculated by following formula:-P =  F ÷ (1+r)nWhere,P = Present valueF = future…

Q: Darcy holds a 200 day note from Brenda. This note was given by Brenda to Darcy since the former owes…

A: ANSWER:- $ 72,024.65 is the bank going to receive on the 200th day of the note

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A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

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A: Future value money is the amount of deposit done and plus amount of interest accumulated over that…