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Able Co Accepted a $20,000 Note on March 10 with Terms

Question 49

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Able Co. accepted a $20,000 note on March 10 with terms of 6%, 60 days. Able Co. discounted the note on March 20, at the Green Bank at 7%. Use ordinary interest. What net proceeds did Able receive?

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20,000 × .06 × 60/360 = $200; ...

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