Consider the following timeline of payments on a $40,000 note receivable on Ella Companys books: Cash received 6/30/Y1: $1,400 Cash received 12/31/Y1: $1,400 Cash received 6/30/Y2: $1,400 Cash received 12/31/Y2: $1,400 Cash received 6/30/Y3: $1,400 Cash received 12/31/Y3: $41,400 When the note was issued, the prevailing market interest rate was 5% APR. Which of the following types of notes is this note?

Consider the following timeline of payments on a $40,000 note receivable on Ella Companys books:

Cash received 6/30/Y1: $1,400

Cash received 12/31/Y1: $1,400

Cash received 6/30/Y2: $1,400

Cash received 12/31/Y2: $1,400

Cash received 6/30/Y3: $1,400

Cash received 12/31/Y3: $41,400

When the note was issued, the prevailing market interest rate was 5% APR. Which of the following types of notes is this note?

1. Consider the following timeline of payments on a $40,000 note receivable on Ella Companys books:

• Cash received 6/30/Y1: $1,400
• Cash received 12/31/Y1: $1,400
• Cash received 6/30/Y2: $1,400
• Cash received 12/31/Y2: $1,400
• Cash received 6/30/Y3: $1,400
• Cash received 12/31/Y3: $41,400

When the note was issued, the prevailing market interest rate was 5% APR. Which of the following types of notes is this note?

Principal repaid in payments over term of note, Non-interest-bearing, issued at a discount

Principal repaid in lump sum at end of note, Interest-bearing, issued at a premium

Principal repaid in lump sum at end of note, Non-interest-bearing, issued at a discount

Principal repaid in payments over term of note, Interest-bearing, issued at face

Principal repaid in lump sum at end of note, Interest-bearing, issued at a discount

Principal repaid in lump sum at end of note, Interest-bearing, issued at face