Mr.A lends $20,000 to Mr.B on May 6,2010.A promissory note is written by Mr.B at a simple interest rate of 9%,with a due date of October 6,2010.The maturity value of the note is $20,769.32.The note was sold by Mr.A on June 26,2010 to Mr.C who discounts the note at a simple discount rate of 8%.What price does Mr.A receive for the note?

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The correct answer is A.The maturity value of the note is $20,769.32. The note was sold by Mr.A on June 26,2010 to Mr.C who discounts the note at a simple discount rate of 8%. The time period is 102 days.The discount is $20,769.32 * 8% * 102 / 360 = $477.98.The price Mr.A receives for the note is $20,769.32 - $477.98 = $20,291.34.

MrA Lends $20,000 to Mr