Rr.2. eppa, an environmental management firm issued to Dara, a $12,000 8% five year installment note that required five equal annual year end payments. This note was discounted to yield a 9 % rate to Dara. Waht is the total interest revenue to be recognized by Dara on this note.

Rr.2. eppa, an environmental management firm issued to Dara, a $12,000 8% five year installment note that required five equal annual year end payments. This note was discounted to yield a 9 % rate to Dara. Waht is the total interest revenue to be recognized by Dara on this note.

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter5: The Time Value Of Money

Section: Chapter Questions

Problem 9P

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Rr.2.

eppa, an environmental management firm issued to Dara, a $12,000 8% five year installment note that required five equal annual year end payments. This note was discounted to yield a 9 % rate to Dara. Waht is the total interest revenue to be recognized by Dara on this note.

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