Problem
You may use your financial calculator or excel for calculations but be sure to show your work (i.e. rate, periods, payments, etc.). For the amortization schedules be sure to print the schedule so all columns fit on one page.
3. James White loans Dion Lewis $550,000. White accepts a 4% note, which requires semiannual interest payments for 10 years. The day after receiving the 4th interest payment, White decides to sell the note to Dedham Savings Bank. Dedham Savings Bank agrees to purchase it to yield a 6% return.
a) What is the amount that James White will receive on the sale of the note to Dedham Savings Bank?
b) Prepare the entries that James White and Dedham Savings Bank will make on the day the note is sold to the bank.