A Promissory Note Has a Face Value of $5000 and It

Multiple Choice

A promissory note has a face value of $5000 and it carries an interest rate of 5% for a period of 6 months (including the period of grace) . It is sold 3 months before the legal due date. What is the present value of the note on the date of sale if money is worth 4%?

A) $5047.26
B) $5070.26
C) $5074.26
D) $5125.00
E) $5125.26