A 90-Day Promissory Note with a Face Value of $500

question 22

Multiple Choice

A 90-day promissory note with a face value of $500 000 is issued at a yield of 7.789% per annum.Calculate its price.

• A) $379 971.77
• B) $419 442.84
• C) $490 578.08
• D) $490 711.67

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Definitions:

Reduction Range

A gearset or mechanism designed to reduce the input speed to a lower output speed, increasing torque in applications like vehicle transmissions.

Idle Rpm

The rotational speed of an engine (in revolutions per minute) when it is idling, or running without any load or acceleration.

Coaxial Spring

A type of spring system where two or more springs are arranged along a common axis, usually one inside the other.

Friction Discs

Components within a mechanical clutch that provide the necessary friction to transfer torque from the driving to the driven shaft, often made of materials that improve grip and durability.