A Promissory Note Has a Face Value of $5000 and It

question 20

Multiple Choice

A promissory note has a face value of $5000 and it carries an interest rate of 5% for a period of 6 months (including the period of grace) . It is sold 3 months before the legal due date. What is the present value of the note on the date of sale if money is worth 4%?

• A) $5047.26
• B) $5070.26
• C) $5074.26
• D) $5125.00
• E) $5125.26

---

Definitions:

Lean Operations

A management philosophy aimed at minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Toyota Production System

A highly efficient and flexible production system developed by Toyota that focuses on eliminating waste and increasing quality.

TPS

Toyota Production System, a highly influential production philosophy focused on eliminating waste, improving productivity, and achieving efficiency in manufacturing.