Question

A 180-day promissory note for $3,500 was issued on November 8, 2014, with interest at 6% p.a. It was sold 80 days later to a finance company at a discount rate of 9% p.a. What price did the finance company pay for the promissory note? What rate of interest did the original owner of the note get?

Name: a 180 day promissory note for 3500 was issued on november 8 2014 with interest at 6 pa it was sold 80 days later to a finance company at a discount rate of 9 pa what price did the finance co 09349
Uploaded: 2022-07-09T01:12:57-08:00
Duration: 6 min 12 s
Channel: Derrick Danso
Description: a 180 day promissory note for 3500 was issued on november 8 2014 with interest at 6 pa it was sold 80 days later to a finance company at a discount rate of 9 pa what price did the finance co 09349

          A 180-day promissory note for $3,500 was issued on November 8, 2014, with interest at 6% p.a. It was sold 80 days later to a finance company at a discount rate of 9% p.a. What price did the finance company pay for the promissory note?  What rate of interest did the original owner of the note get?

Added by Carlos W.

Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Derrick Danso

07/09/2022

Step 1

The promissory note was issued on November 8, 2014, and it has a term of 180 days. To find the maturity date, we add 180 days to November 8, 2014. Maturity date = November 8, 2014 + 180 days = May 7, 2015 Show more…

Show all steps

Thanks for your feedback!

A 180-day promissory note for $3,500 was issued on November 8, 2014, with interest at 6% p.a. It was sold 80 days later to a finance company at a discount rate of 9% p.a. What price did the finance company pay for the promissory note? What rate of interest did the original owner of the note get?