Question
Asked Apr 23, 2019
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Sove the problem. 

Ted owes $2000 to Mary. The loan is payable in 1 year at 10%. Mary needs cash, so 2 months before the loan is payable she goes to her bank which will pay her the maturity value of the note less at 14% discount fee. Find the amount Mary will receive. 

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Expert Answer

Step 1

It is given that, Teds repay the money $2000 to Marry. The loan interest is 10% in 1 year. Since Teds repay the loan 2 month, the maturity value note less at 14% discount fee.

Calculate the Maturity value M for the amount $2000 with the interest 10% in 1 year.

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Step 2

Since Ted the pay the loan before two months, ...

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