What must be the face value of each note

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Reference no: EM13939385

Sunnydale Organics, Inc. harvests crops in roughly 3-month cycles. The firm receives payment from its harvests sometime after shipment. Due in part to the firm's rapid growth, it has been borrowing to finance its harvests using 3-month bank notes on which it pays 12 percent discount interest per year. If the firm requires $60,000 in proceeds from each note, what must be the face value of each note?

a. $61,856

b. $67,531

c. $67,423

d. $68,182

e. $60,000

Reference no: EM13939385

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