Value of the note

A 10-month promissory note issued on March 21, 2021, bearing interest of 7.2% p.a., has a maturity value of $4128.02. Find the face value of the note.

Correct answer:

a =  3894.36 USD

Step-by-step explanation:

b=4128.02 USD q=7.2%=1007.2=0.072 t=10/12=650.8333  r=1+q t=1+0.072 0.8333=5053=1.06   b = a   r  a=b/r=4128.02/1.06=3894.36 USD



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