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

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Definitions:

Greater Germany

A concept or political goal that sought to unify all German-speaking peoples into a single nation-state, historically associated with various periods of German nationalism.

Nazi Dictator

Refers to Adolf Hitler, who led Germany from 1933 to 1945 under the National Socialist (Nazi) Party, resulting in massive global conflict and atrocities.

Isolationist Tide

Refers to a period or sentiment where a nation or its people favor non-involvement in international agreements, wars, or alliances, preferring a focus on domestic issues.

Franklin Roosevelt

The 32nd President of the United States (1933-1945) who led the country through the Great Depression and World War II, known for his New Deal programs aimed at economic recovery and social reform.