A Merchant Issues a Promissory Note

question 80

Multiple Choice

A merchant issues a promissory note.The note has a term of 90 days and a maturity value of $6122.30.The note is sold after 30 days to a bank that discounts the note at d = 10% simple discount.How much does the bank pay for the note?

• A)$6016.63
• B)$6018.42
• C)$6021.66
• D)$6023.29

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Definitions:

Calcium Depletion

A condition where the body has insufficient levels of calcium, which can lead to weakened bones and other health issues.

Bone Matrix

The intercellular substance of bone tissue, consisting of collagen fibers and ground substance, that gives the bone its strength and rigidity.

Osteoporosis

A condition characterized by weakened bones, increasing the risk of fractures.

Fractures

Breaks in bones, which can vary in severity from small cracks to complete breaks.