Marin Inc. loans money to John Kruk Corporation in the amount of $1,024,000. Marin accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Marin needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Marin will receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Marin Inc. loans money to John Kruk Corporation in the amount of $1,024,000. Marin accepts an 8% note due in 7 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Marin needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Marin will receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
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
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Transcribed Image Text:Marin Inc. loans money to John Kruk Corporation in the amount of $1,024,000. Marin accepts an 8% note due in 7 years with
interest payable semiannually. After 2 years (and receipt of interest for 2 years), Marin needs money and therefore sells the note
to Chicago National Bank, which demands interest on the note of 10% compounded semiannually. What is the amount Marin will
receive on the sale of the note? (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal
places, e.g. 458,581.)
Amount received on sale of note
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