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Hillier Hillier
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Posts: 550
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6 years ago
A note dated July 1, 2000, promises to pay $9000 with interest at 12.4% compounded quarterly on January 1, 2007. Find the proceeds from the sale of the note on July 1, 2002, if money is then worth 8.64% compounded semi-annually.
Textbook 
Contemporary Business Mathematics with Canadian Applications

Contemporary Business Mathematics with Canadian Applications


Edition: 11th
Authors:
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6 years ago
Balance on Jan. 1, 2007
Maturity Value = 9000.00(1.031)28 = 9000.00(2.3509459) = $21 158.51
Discounted value on July 1, 2002
PV = 21158.51(1.0216)-9 = 21158.51(.8250344) = $17 456.50
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