A Five-Year Promissory Note with a Face Value of $3500

question 49

Multiple Choice

A five-year promissory note with a face value of $3500, bearing interest at 11% compounded semiannually, was sold 21 months after its issue date to yield the buyer 10% compounded quarterly. What amount was paid for the note?

• A) $3500
• B) $5978.51
• C) $4336.93
• D) $6021.50
• E) $4251.71

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Definitions:

Active Voice

A sentence structure where the subject performs the action stated by the verb, making the writing clear and direct.

Passive Voice

A grammatical voice where the subject is the recipient of the action, often making the sentence less direct.

Shortening Sentences

The practice of making sentences briefer while retaining their original meaning.

Dependent Clause

A part of a sentence that cannot stand alone because it does not express a complete thought.