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Nan read the note that Tom had just given her. She was doing some home repair for Tom. The note represented the $10,000 that Nan and Tom agreed upon for all of the work. The note read as follows:
I, Tom Drum, hereby promise to pay to the order of Nan Hardy ten thousand dollars ($10,000). This sum is contingent upon my ability to receive a loan in the same amount from West Bank International. I give this negotiable instrument as the full payment for Nan Hardy's repairs to my home.
Is this note negotiable? Discuss why or why not.
What is the present value of $10000 to be received 20 years from now , if the principle is invested at 8% per year, compounded annually ?
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