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Test: CPA Financial Accounting and Reporting (FAR)
1. | Walnut Company received from a customer an 1-year, $200,000 note bearing annual interest of 8%. After holding the note for 8 months, Walnut discounted the note at a local bank at an effective rate of 12%. What is the maturity value of the note? |
$226,000
$216,000
$200,000
$169,500
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