On March 30, Wade accepted a nine-month $32,250 promissory note at 7% interest from one of his clients for work he completed. On April 27, he sold the note to his local bank at 9.5% interest. What were his proceeds?

Question

On March 30, Wade accepted a nine-month $32,250 promissory note at 7% interest from one of his clients for work he completed.  On April 27, he sold the note to his local bank at 9.5% interest.  What were his proceeds?

tkhunny · Answer

How is interest calculated for a Promissory Note?  Simple?  Compound?  If compound, Daily, Weekly, Monthly, what?