A six month promissory note dated March 31/2019 and bearing an interest rate of 5% has...

Question

Question

A six month promissory note dated March 31/2019 and bearing an interest rate of 5% has a maturity value of $2500. find the face value of the note

business finance

Answer 1

Answer #1

Face value = Maturity value / (1 + r)^t

Face value = $2500 / (1 + 0.05)^6/12

Face value = $2439.75

Answer 2

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