Asked by Mbambo Siyabonga on Jun 17, 2024
Verified
A 90-day non-interest-bearing promissory note for $3,300 is dated August 1. What would be a fair selling price of the note on September 1 if money can earn 7.75% simple interest?
Promissory Note
A monetary tool that carries a formal commitment from one party to another to pay a specific amount of money, either immediately upon request or at a predetermined future time.
Non-interest-bearing
A financial term describing a debt or loan that does not accrue interest over time.
Simple Interest
A method of calculating the interest charge on a loan based on the original principal balance and not on accumulated interest.
- Compute the revenue and sale values of non-interest-accruing promissory notes.
Verified Answer
Learning Objectives
- Compute the revenue and sale values of non-interest-accruing promissory notes.
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