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:

Stimulus-Response

A concept in psychology referring to the idea that a specific stimulus will elicit a predictable and measurable response from an individual or system.

Formula Selling

a predetermined, structured approach to selling that follows a specific sequence of steps designed to enhance the likelihood of making a sale.

Presentation Format

A specified structure or layout used when displaying information or data to an audience, typically in a formal setting such as a meeting or seminar.

Sales Plan Implementation

The process of executing strategies and actions outlined in a sales plan to achieve sales goals and objectives.