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A Five-Year, $4500

Question 18

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A five-year, $4500.00 promissory note with interest at 7.5% compounded semi-annually was discounted at 8% compounded quarterly yielding proceeds of $6150.00. How many months before the due date was the discount date?

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PV = 4500, i = 0.075 ÷ 2 = 0.0...

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