Albert purchased Bonzo's car for $500 cash and a non-interest bearing promissory note for $2,000 payable in two years. How much money can Bonzo expect to receive for the note if he immediately sells it to Corleone Finance Company at a discount rate of 30% compounded monthly?

A) $383
B) $2,616
C) $1,617
D) $1,400
E) $1,106

To determine the present value of the $2,000 note that Bonzo sells to Corleone Finance Company, we use the formula for the present value of a single future amount: $PV=\frac{FV}{(1+r{)}^n}$ , where PV is the present value, FV is the future value ($2,000), r is the monthly interest rate (30% annual rate compounded monthly gives a monthly rate of $30\%/12=2.5\%$ , or 0.025 as a decimal), and n is the total number of compounding periods (2 years * 12 months/year = 24 months).Substituting the values, we get: $$PV=\frac{2000}{(1+0.025{)}^{24}}$$$$PV=\frac{2000}{(1.025{)}^{24}}$$$$PV=\frac{2000}{1.8061}$$ (rounded off) $$PV=1106$$ (rounded to the nearest dollar)Therefore, Bonzo can expect to receive $1,106 for the note if he sells it immediately to Corleone Finance Company.