A Five-Year, $4500

question 18

Essay

A five-year, $4500.00 promissory note with interest at 7.5% compounded semi-annually was discounted at 8% compounded quarterly yielding proceeds of $6150.00. How many months before the due date was the discount date?

---

Definitions:

Purchasing Department

A dedicated function in a company responsible for acquiring goods and services needed for business operations.

Investigation

A detailed inquiry or systematic examination to discover facts or information about a specific subject or area of concern.

Labor Quantity Variance

The difference between the actual hours of labor used and the standard hours expected for the level of production, often related to efficiency.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.