Question

A building contractor gives a ​$15,000 promissory note to a plumber who has loaned him 15,000.

The note is due in 9 months with interest at 9​%. Six months after the note is​ signed, the plumber sells it to a bank. If the bank gets a 11​% return on its​ investment

a-How much will the plumber​ receive?

b-Will it be enough to pay a bill for ​$15,092​?

How much will the plumber​ receive?

Answer 1

Solution And A building Contractor gives a $15000 Promissory note to a plumber who has loaned him Sooo, the note is due in 9 months with interest at 9%. After six mouth the note is sells to a bank , 4 the bank gets a 114 retush on its investment À Materity value of note after 9 months is A = (lt ot) A: $ 15000 ( 1+ 0.09 x 82 rate A. $ Sood (1+8!) t a time A = Amount A : $ (Sood x 1.0675 LA. $16012.5 I. Principle A.) 6.) After a months @ 9% plumber will receive $16012-5 In three months (9-6 masing bank will receive $ 16012.5. Since the bank wants a 11% setuon the present value of this amount at 11% for three months : P = A itot

P = - $16012.5 Itollx2 2. Present value A = d = t = Amount rate time P= $ 16012.5 100275 P 2 $ 15583.94 for $15012. Yes The it will be enough to pay a bill Numbed will receive $15583.94 les seve necesario