Stéphanie visited a financial institution and signed a 10-year, non-interest-bearing promissory note for $6000. She intends to give this to her son William, to partly fund his education. Due to unforeseen circumstances, the note is purchased after only 25 months at 2.15% compounded quarterly. In order to find the selling price of the note (i.e. the proceeds), which variable is to be calculated? a.PV of the 10-year note b.IY of the 10-year note c.FV of the 10-year note d.PMT of the 10-year note
Stéphanie visited a financial institution and signed a 10-year, non-interest-bearing promissory note for $6000. She intends to give this to her son William, to partly fund his education. Due to unforeseen circumstances, the note is purchased after only 25 months at 2.15% compounded quarterly. In order to find the selling price of the note (i.e. the proceeds), which variable is to be calculated? a.PV of the 10-year note b.IY of the 10-year note c.FV of the 10-year note d.PMT of the 10-year note
Chapter4: Time Value Of Money
Section: Chapter Questions
Problem 25PROB
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Stéphanie visited a financial institution and signed a 10-year, non-interest-bearing promissory note for $6000. She intends to give this to her son William, to partly fund his education. Due to unforeseen circumstances, the note is purchased after only 25 months at 2.15% compounded quarterly.
In order to find the selling price of the note (i.e. the proceeds), which variable is to be calculated?
a.PV of the 10-year note
b.IY of the 10-year note
c.FV of the 10-year note
d.PMT of the 10-year note
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