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At the beginning of the year, a company accepted a $14,000 face value, 6-year, non- interest-bearing note in exchange for services it provided to a
At the beginning of the year, a company accepted a $14,000 face value, 6-year, non- interest-bearing note in exchange for services it provided to a customer. 8 percent (8%) is a reasonable cost of borrowing for non-interest-bearing notes of this nature. The face value is due when the note matures. Required: Answer the following two questions. You should use your financial calculator to answer the first question. Note: Do not use decimals or cents in your answers and round to the nearest whole dollar. Question #1: Rounded to the nearest whole dollar, what is the present value of this note? Question #2: Rounded to the nearest whole dollar, how much total interest will be recognized on this note over the entire 5 years
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