Friday, 14 July 2017

Picard Orchards requires a $100,000 annual loan in order to pay laborers to tend and harvest its fruit crop.

Picard Orchards requires a $100,000 annual loan in order to pay laborers to tend and harvest its fruit crop. Picard borrows on a discount-interest basis at a nominal annual rate of 11 percent. If Picard must actually receive $100,000 net proceeds to finance its crop, then what must be the face value of the note?
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