Question

A note for $3,000 dated October 24, 2016 with interest at j12 = 8% is due...

A note for $3,000 dated October 24, 2016 with interest at j12 = 8% is due two years later on October 24, 2018. On March 10, 2017, the holder of the note sells it to a third party who charges j4 = 9%. Find the purchase price of the note, assuming simple interest is charged for the fractional part of the interest period.

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Answer #1
issued date purchase date no of days interest charges
value issued date rate of int maturtiy date 24-10-2016 10-03-2017 137
note 3,000.00 24.10.2016 9% 24.10.2018
interset utpo 24.10.2017 540.00
maturity value 3,540.00
interest for year 270.00
interest upto 10.03.2017 101.34
value as on 10.03.2017 3,101.34
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