How much money will save as a result of the refinancing

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Question 1: HP Producers SAC., Has two debts: 1) one for US $ 22,000.00 acquired 20 months ago from a 21.5% TEA and 2) another for US $ 78,576.00 acquired 6 months ago at a 23.2% TEA. If your finance manager has found a new source of financing, one that offers to buy your debts in exchange for signing a promissory note with a 130-day maturity and an TEA of 13.3%. What will be the face value of this instrument? How much money will you save as a result of this refinancing?

Reference no: EM132597016

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