A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue sold for $980,000 and has an annual interest rate of 12.24 percent. The value of the commercial paper at maturity is
A. $19,992.
B. $980,000.
C. $999,992.
D. $960,008.
Answer:C
A firm has directly placed an issue of commercial paper that has a maturity of 60 days. The issue sold for $980,000 and has an annual interest rate of 12.24 percent. The value of the commercial paper at maturity is
A. $19,992. B. $980,000. C. $999,992. D. $960,008.