Question

Asked Nov 25, 2019

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A $5000.00, six-year note bearing interest at 8.24% compounded quarterly, discounted three and a half years after the date of issue at 6.6% compounded monthly. Find the proceeds.

Step 1

Rate per quarter is 8.24%/4 is 2.06%.

Time duration is 6*4=24 quarters.

Step 2

After years, it will be the following:

Step 3

An amount of $6651.93 would be compounded monthly at a percentage of 6....

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