An Investor Is Prepared to Buy Short-Term Promissory Notes at a Price

question 77

Short Answer

An investor is prepared to buy short-term promissory notes at a price that will provide him with a return on investment of 12%. What amount would he pay on August 9 for a 120-day note dated July 18 for $4,100 with interest at 10.25% pa?

---

Definitions:

Insert Tab

An area in many software applications that provides options for adding various elements to a document, such as tables, pictures, or shapes.

Remove Background

A feature in image editing software that allows users to isolate and eliminate the background from a photo or graphic.

Hide During Show

A feature in presentation software that allows specific content to be invisible during a slideshow.

Background

The portion of a visual display that lies behind the primary subjects, often setting the context or theme of the visual content.