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- Lawrence signs a note promising to pay Justin $2500 at 11.25% compounded monthly in 7 years. However, 6 months before maturity, Justin sells the note to Angela who discounts the note on 17.25% bank discount rate. a. Find the maturity value of the note. b. How much did Justin receive from the sale of the note toAngela? $Peter buys an item from Sue and signs a note to pay $315 in 10 months. Then, 3 months before the note comes due, Sue sells the note to a bank which discounts the note based on 14% simple interest. How much did the bank pay Sue for the note? $Sean purchased an interest-bearing promissory note for $11,000.00 at 5.00% p.a., due in 90 days. If he sold the note in 36 days by discounting it at 6.00% p.a., calculate the proceeds of the note. Round to the nearest cent
- One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $520 per month. You will charge .92 percent per month interest on the overdue balance. If the current balance is $14,740, how long will it take for the account to be paid off?Arnold purchased a note from Sylvester for $4300. The note will mature in 240 days, and bears 0.065 of simple interest rate. But 120 days after Arnold purchased the note, his friend Bruce convinced him to sell him the note for $4478.87. Bruce keeps the note until maturity. (a) What is the simple interest rate for Arnold in these transactions? (b) What is the simple interest rate for Sylvester in these transactions? (c) What is the simple interest rate for Bruce in these transactions? Submit AnswerMichael bought a $20,000, 26-week T-bill at a discount rate of 5.9% on August 12. He sold it 11 weeks later at a discount rate of 6.5%. Find Michael's purchase price, the discount 11 weeks later when he sold it, proceeds to Michael, and the effective interest rate for the time he held the note. (Hint: Treat T-bills as a discount note.) Michael's purchase price was $. (Round to the nearest cent as needed.) C
- Bill Casler bought a $6000, 9-month certificate of deposit (CD) that would earn 9.2% annual simple interest. (a) What is the value of the CD when it matures? $ (b) Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend? (Round your answer to the nearest cent.) $ (c) What annual simple interest rate did Bill Casler end up making on his investment? Round your answer to two decimal places. %1) Mike holds a P32,400 simple interest note at 12.5%, which is payable at the end of a year, from Carlo. If Mike decides to sell the note 5 months after the origin date, how much will he receive if the discount rate is 13.5%? Not use excelCurtis buys a piece of commercial property for $230,000. He is offered a 20-year loan by the bank, at an interest rate of 9% per year. The loan requires annual payments to be made. What is the annual loan paymen Curtis must make assuming the first payment will be due one year from the date of purchase? O A. $40,313.10 O B. $30,234.83 O C. $35,273.97 O D. $25,195.69 O Time Remaining: 00:29:43 Next dtv 11 DD F11 F9 F10 F8 F7 F5 esc F4 F2 F3 F1 & @ 2# $ % 8 1 3. 4 { P < CO
- Jane deposits 10,000 USD and opens a deposit account at a bank. It will also deposit 6,000 USD one year later and 4,000 USD the following year. The deposit account is valued at the annual fixed effective interest rate of x%. Calculate the interest rate (x), if the value of the money in his account at the time Suat deposits 4,000 USD is 22,000 USD? ThanksSuppose you loan $10,000 for 1 year to an individual who agrees to pay you interest at a compound rate of 10%/year. At the end of 1 year, the individual asks to extend the loan period an additional year. The borrower repeats the process several more times. Five years after loaning the person the $10,000, how much would the individual owe you?You invest $1,000 in a certificate of deposit that matures after ten years and pays 5 percent interest, which is compounded annually until the certificate matures. How much interest will you earn if the interest is left to accumulate? How much interest will you earn if the interest is withdrawn each year? Why are the answers to a and b different?