A Twenty-Year Note for $1000

question 67

Multiple Choice

A twenty-year note for $1000.00 bearing interest at 9% compounded monthly is discounted at 5% compounded quarterly four years and six months before maturity. Find the proceeds of the note.

• A) $6009.15
• B) $4805.10
• C) $133.07
• D) $4800.65
• E) $4741.93

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Definitions:

Appraisal

the act of evaluating or estimating the nature, quality, or significance of something, often involving judgment or assessment.

Emotion

A complex state of feeling that results in physical and psychological changes that influence thought and behavior.

Interpretation

The act of explaining or understanding the meaning or significance of something.

Past Experience

The accumulation of knowledge, skills, or encounters that an individual has had in their life, which influences their actions, decisions, and perceptions.