Compute the present value of the note and the amount of the, Ask an Expert

Accounting

On December 31, 2011, Pesnya Company accepted a promissory note from Wena Enterprise for services rendered. The Note has a face value of $475,000 is due December 31, 2018, and pays interest annually at stated rate of 3%. The market rate of interest for a note of similar risk is 9%.

Instructions:

Compute the present value of the note and the amount of the discount.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M956201

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