Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $20,050 at 8% for 3 years. Use ordinary interest as needed. a. Calculate the simple interest note proceeds. Simple interest note proceeds b. Calculate the simple discount note proceeds. Simple discount note proceeds

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter4: Time Value Of Money
Section4.17: Amortized Loans
Problem 1ST
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Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had
the same terms: $20,050 at 8% for 3 years. Use ordinary interest as needed.
a. Calculate the simple interest note proceeds.
Simple interest note proceeds
b. Calculate the simple discount note proceeds.
Simple discount note proceeds
Transcribed Image Text:Carl Sonntag wanted to compare what proceeds he would receive with a simple interest note versus a simple discount note. Both had the same terms: $20,050 at 8% for 3 years. Use ordinary interest as needed. a. Calculate the simple interest note proceeds. Simple interest note proceeds b. Calculate the simple discount note proceeds. Simple discount note proceeds
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