Current Attempt in Progress On December 31, 2025, Blue Company signed a $1,031,300 note to Kingbird...

Transcribed Image Text:

Current Attempt in Progress On December 31, 2025, Blue Company signed a $1,031,300 note to Kingbird Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Blue's financial situation worsened. On December 31, 2027, Kingbird Bank determined that it was probable that the company would pay back only $618,780 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,031,300 loan. (a) Determine the amount of cash Blue received from the loan on December 31, 2025. (Round present value factors to 5 decimal places, es. 0.52513 and final answer to O decimal places, eg. 5,275) Amount of cash Blue received from the loan eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer Current Attempt in Progress On December 31, 2025, Blue Company signed a $1,031,300 note to Kingbird Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Blue's financial situation worsened. On December 31, 2027, Kingbird Bank determined that it was probable that the company would pay back only $618,780 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,031,300 loan. (a) Determine the amount of cash Blue received from the loan on December 31, 2025. (Round present value factors to 5 decimal places, es. 0.52513 and final answer to O decimal places, eg. 5,275) Amount of cash Blue received from the loan eTextbook and Media Save for Later Attempts: 0 of 3 used Submit Answer