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Question - On February 20th, a 5 month note for $8,420 was received by Lucky Company to settle an amount owing from a customer. It bears interest at the rate of 8% per annum. Assume the note is settled on maturity and Lucky makes the appropriate entry. A year has 364 days or 52 weeks.
Required -
Find the amount (simple interest plus principal) received by Lucky at maturity?
If the note has monthly compounded interest, find the total amount of interest received by Lucky at maturity?
If the note has biweekly compounded interest, find the total amount of principal received by Lucky at maturity?
If the note is sold on March 20th, find the total amount of interest accrued by Lucky?
If the note has biweekly compounded interest and it is sold on March 20th, find the total amount of interest accrued by Lucky?
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