Ann Demas loaned $230,896 to Joe Smith on January 1, 2020. A zero-interest-bearing note (face amount, $275,000) was exchanged solelyfor cash; no other rights or privileges were exchanged. The note is to be repaid in three years on December 31, 2022. The prevailing rate ofinterest for a loan of this type is 6%. The present value of $275,000 at 6% for three years is $230,896. At December 31, 2021, the balance ofof the Discount on Note Payable account would be(round to whole dollars)Answer:

The balance of discount on Note Payable account is the discounted amount of the face value of the…

Answered: Ann Demas loaned $230,896 to Joe Smith…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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