Suppose a company accepts a 90

Suppose a company accepts a 90 - If the company immediately...

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Suppose a company accepts a 90-day, 9%, $5,000 note, which has a maturity value  (principal + interest) of $5,110.96. In this example, precise calculations are made by  using a 365-day year and by rounding results to the nearest penny.
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Unformatted text preview: If the company immediately discounts with recourse the note to a bank that offers a 15% discount rate, the bank's discount is $189.04...
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This note was uploaded on 11/14/2011 for the course ACCT 1310 taught by Professor Staff during the Fall '10 term at Texas State.

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