A Five Year Promissory Note with a Face Value of $5000

question 119

Multiple Choice

A five year promissory note with a face value of $5000, bearing interest at 6% compounded semi-annually, was sold 18 months after its issue date to yield the buyer 4% compounded quarterly. What amount was paid for the note?

• A) $6719.58
• B) $5845.79
• C) $5463.64
• D) $4753.16
• E) $4349.82

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Definitions:

Spanish Military Power

Refers to the strength and capabilities of Spain's armed forces historically and in contemporary times.

Hawaii Annexation

The process by which Hawaii became a part of the United States in 1898, marking the expansion of U.S. territory in the Pacific.

Congress

The legislative body of the United States government, consisting of two houses: the Senate and the House of Representatives, responsible for creating laws.

Desegregated Regiments

Military units in which members of different races are integrated, as opposed to segregated units which were racially divided.