A Promissory Note Has a Face Value of $4500 and It

question 62

Multiple Choice

A promissory note has a face value of $4500 and it carries an interest rate of 8.73% for a period of 4 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 8.2%?

• A) $4573.92
• B) $4537.92
• C) $4357.92
• D) $4592.37
• E) $4777.92

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Definitions:

Just Noticeable Difference

The minimum difference in stimulation required to detect a difference between two stimuli, also known as the difference threshold.

Perceptual Threshold

The minimum level at which a stimulus is detected by the senses.

Difference Threshold

is the minimum detectable difference between two sensory stimuli, also known as the just noticeable difference (JND), essential in sensory and perception studies.

Weber's Threshold

A principle in psychology that states the change in a stimulus that will be just noticeable is a constant ratio of the original stimulus.