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. 

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Expert Answer

Step 1

 

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

Time duration is 6*4=24 quarters.

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Amount P1 100 2.06 5000 1 100 S8,156.49

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Step 2

After  years, it will be the following:

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2.06 Amount 5000 1+ 100 = $6651.93

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Step 3

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

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12 25 6.6 Amount 6651.93352139 1+ 12 100 = S6651.93352139(1+ 0.0055) =S7841.70

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