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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