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. What is the selling price of the note (i.e. the proceeds)? a. $5920.13 b. $5737.87 c. $5063.24 d. $5247.46
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. What is the selling price of the note (i.e. the proceeds)? a. $5920.13 b. $5737.87 c. $5063.24 d. $5247.46
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 38P
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Question
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.
What is the selling price of the note (i.e. the proceeds)?
a.
$5920.13
b.
$5737.87
c.
$5063.24
d.
$5247.46
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