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ANEK [815]
3 years ago
5

Compute the face value of a 90-day promissory note dated October 22, 2018 that has a maturity value of $76,386.99 and an interes

t rate of 7.5% p.a.
Mathematics
1 answer:
aliina [53]3 years ago
6 0

Answer:

The face value would be $75,000

Step-by-step explanation:

Maturity value = $76,386.99

Time = 90 days

Rate of interest = 7.5%

Let face value be 'x'

By using the formula A=P(1+\frac{RT}{100})

                      $76,386.99 = x(1+\frac{7.5\times \frac{90}{365}}{100})

Time in years = \frac{90}{365}

⇒ $76,386.99 = x( 1 + 0.01849315 )

⇒ x = \frac{76,386.99}{1.01849315}

x = $75,000

The face value would be $75,000

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