19.

Company A received a five year $25,000 note bearing interest of 3%. The market rate of the note is 2.5%. What amount of interest revenue will the company record at the end of the first year?

$750

$767

$625

$640

20.

Company X makes a loan in exchange for a two-year, $8,000 note. The stated interest rate is 6%. The market rate is 4%. What amount of premium does the company amortize at the end of the second year? Please round to the nearest whole number.

332

326

148

154