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Question
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 simple 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?
a. $111,000
b. $100,000
c. $112,360
d. $89,000
e. $108,840
Answer
This answer is hidden. It contains 11 characters.
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