A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was sold after 2 years. The buyer wanted a return of 5% compounded quarterly. What was the selling price of the note? Your Answer: Answer

A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was sold after 2 years. The buyer wanted a return of 5% compounded quarterly. What was the selling price of the note? Your Answer: Answer

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA3: Time Value Of Money

Section: Chapter Questions

Problem 8CE

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A 7 year, $7,500 promissory note bearing interest at 6% compounded monthly was
sold after 2 years. The buyer wanted a return of 5% compounded quarterly. What
was the selling price of the note?
Your Answer:
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