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Company XYZ Purchased Some Machinery and Gave a Five-Year Note

Question 40

Multiple Choice

Company XYZ purchased some machinery and gave a five-year note with a maturity value of $20,000. The discount rate is 8% annually and the interest is discounted monthly. How much did the company borrow?


A) $13,612
B) $12,000
C) $19,346
D) $13,424

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