Find the present value of a non-interest-bearing seven-month promissory note for $1800 dated August 27, 2012, on December 4, 2012, if money is then worth 8.375%.

Question

Quizplus · Accepted Answer

The Answer is Due date: March 30, 2013
Maturity value: $1800.00
Discount period: December 4, 2012 - March 30, 2013
Due date: March 30, 2013 Maturity value: $1800.00 Discount period: December 4, 2012 - March 30, 2013 P = = = $1753.33

Due date: March 30, 2013 Maturity value: $1800.00 Discount period: December 4, 2012 - March 30, 2013 P = = = $1753.33

P =

=

= $1753.33

Find the Present Value of a Non-Interest-Bearing Seven-Month Promissory Note