From the answer in that picture, how can we get 0.1268? 1. The Lexington Property Development Company has a RM10,000 note receivablefrom a customer due in three years. How much is the note worth today if the interest rateisb. 12% compounded monthly? b. R=12%Present value = Future value/ (1+r)^n= 10,000 / (1+0.1268)^3= 6989.25

Dear student, you have specifically asked, how 0.1268 get in the solution. This is an annual…

Answered: b. R=12% Present value = Future value/…

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b. R=12% Present value = Future value/ (1+r)^n = 10,000 / (1+0.1268)^3 = 6989.25

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 15MC: Marathon Peanuts converts a $130,000 account payable into a short-term note payable, with an annual...

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From the answer in that picture, how can we get 0.1268?

1. The Lexington Property Development Company has a RM10,000 note receivable
from a customer due in three years. How much is the note worth today if the interest rate
is
b. 12% compounded monthly?

b. R=12%
Present value = Future value/ (1+r)^n
= 10,000 / (1+0.1268)^3
= 6989.25

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