A $7,000 Non-Interest-Bearing Promissory Note Is Discounted at 10% Compounded

question 245

Multiple Choice

A $7,000 non-interest-bearing promissory note is discounted at 10% compounded quarterly, two years before maturity. What are the proceeds from the sale of the note?

• A) $6,829.27
• B) $6,662.70
• C) $5,785.12
• D) $5,933.33
• E) $5,745.23

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Definitions:

Internal Iliac Arteries

Internal iliac arteries are major blood vessels that branch off the common iliac arteries and supply blood to the pelvic organs, gluteal region, and perineum.

Visceral Branches

Refers to the branches of a main artery that supply blood to the organs within the body cavities.

Reproductive Organs

Structures in organisms that are involved in the production of offspring, including organs for producing gametes and supporting fertilization and development.

Inferior Vena Cava

A large vein that carries deoxygenated blood from the lower and middle body into the right atrium of the heart.