Pacific Motors Inc. plans to issue $3,000,000 of commercial paper with a 6-month maturity at 98% of par value. What is the discounted selling price of the firm's commercial paper?
A) $3,000,000
B) $2,940,000
C) $2,700,000
D) $2,666,667
Answer: B
Explanation: B) Discounted selling price = Face Value × % of par = $3,000,000 × 0.98 = $2,940,000.
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