Determine the principal value of the note, Accounting Basics

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Determine the principal value of the note

Problem: Given the following information concerning a promissory note:

Interest Rate: 12%

Term: 120 Days

Interest: $228

Required: Determine the principal value of the note.

Note: To simplify the arithmetic in the problem, use 360 days for the number of days in a year.

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Accounting Basics: Determine the principal value of the note

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