Detailed explanations

On January 1, 2018, The Blue Spruce Company received a 4-year promissory note that had a face value of $1,180,000, and a stated interest rate of 6%. Interest was receivable on January 1 each year. The note was issued to yield an effective interest rate of 8%. The Blue Spruce Company is publicly traded, uses the effective interest method of amortization for discounts or premiums, and has an April 30 year-end. Click here to view the factor table present value of Click here to view the factor table present value of an annuity of 1