ote, the company endorsed the note with recourse (discounted) to YZ Finance Company at a 9 percent annual rate. Compute the following: (a) The company's proceeds from the note.
Interest-bearing Note. A company accepted a trade note from AB Merchandising, face-value P3,000, 15 percent interest-bearing, dated August 18, maturing in 180 days. Assume 360 days in a year.
Required:
Sixty days prior to the maturity of the note, the company endorsed the note with recourse (discounted) to YZ Finance Company at a 9 percent annual rate. Compute the following:
(a) The company's proceeds from the note.
(b) The company's interest earned (net of discount).
(c) Give the
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