(SOLVED)- In arranging for a 90 day loan from a bank Mandy


Question Description:

$19

In arranging for a 90-day loan from a bank, Mandy Company has the option of (1) Giving a $ 50,000, 6 percent interest- bearing note, dated November 3, that will be accepted at face value (2) Giving a $ 50,000 note that will be discounted at 6 percent. a. What is the amount of interest in each case? b. What is the amount of cash Mandy Company actually receives in each case?

Answer

$19