Essay
Health Acer Company granted an extension on an open account by accepting a 60-day, 6 percent note for $5,000, dated July 20. To raise cash, it sold the note to a bank on August 20. The bank charged a discount rate of 7 percent. Assume a 360-day year. Calculate the amount of interest income/expense in the deal. Round off the calculations to two decimal places.
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Interest to maturity date = $5,000 × .06...View Answer
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