The Payee on a 3-Month $2,700 Note Earning Interest at 4

question 90

Short Answer

The payee on a 3-month $2,700 note earning interest at 4% wishes to sell the note to raise some cash. What price should she be prepared to accept for the note (dated May 19) on June 5 in order to yield the purchaser a 7% rate of return?

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