Islamic Banking Is Being Introduced in Oman, Such That No

Multiple Choice

Islamic banking is being introduced in Oman, such that no interest is given on the promissory notes. Compute the present value on the date of issue of a non-interest-bearing, worth $850 000, three-month promissory note dated September 1, 2013 (plus 3 days of grace) , if money is worth 12.5% in Oman.

A) $824 311
B) $847 272
C) $877 363
D) $823 490
E) $26 510