The proceeds of a $9,000 8-year promissory note eaming 5% compounded semi-annually were $10,474. How many yearsbefore maturity date was the note sold if the discounted rate was 7.2% compounded annually.4.5 years7.5 years5.5 years6.5 years3.5 years

In this we need to calculate the discounted value of future value.

Answered: The proceeds of a $9,000 8-year…

Financial Accounting Intro Concepts Meth/Uses

14th Edition

ISBN:9781285595047

Author:Weil

Publisher:Weil

ChapterA: Appendix - Time Value Of Cash Flows: Compound Interest Concepts And Applications

Section: Chapter Questions

Problem 26E

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The proceeds of a $9,000 8-year promissory note eaming 5% compounded semi-annually were $10,474. How many years before maturity date was the note sold if the discounted rate was 7.2% compounded annually. 4.5 years 7.5 years 5.5 years 6.5 years 3.5 years