Culver Inc. loans money to John Kruk Corporation in the amount of $773,600. Culv

ID: 2395677 • Letter: C

Question

Culver Inc. loans money to John Kruk Corporation in the amount of $773,600. Culver accepts an 8% note due in 8 years with interest payable semiannually. After 2 years (and receipt of interest for 2 years), Culver needs money and therefore sells the note to Chicago National Bank, which demands interest on the note of 10% compounded semiannually, what is the amount Culver will receive on the sale of the note? (Round factor values to 5 decimal places, eg. 1.25124 and Vinal answer to o decimal places, e.g. 458,581.) Amount received on sale of note Click if you would like to Show Work for this question: Open Show Work Attempts: o of 15 used SAVE FOR LATER SUBMIT ANSWER The parts of this question must be completed in order. This part will be available when you complete the part above.

Explanation / Answer

Loan Amount given by C to J

773600 for 8 Years Interest paid semiannualy @ 8%. Thus Interest Recovered is 61888 till date.

Time passed

2 years

Principal Amount Recovered

193400 (773600/8*2)

Principal Amount Left

580200(773600-193400)

580200

Now here interest is compounded semiannually for 2% extra

1.12682503013197

653783.882482569

Extra Interest Portion

73583.8824825688

Money Received by C will be from Bank after 2 years

506616.117517431