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FACTS: At the beginning of 2021 (January 1, 2021), LENDER Company made a loan to BORROWER Company and LENDER received in exchange from BORROWER a
FACTS: At the beginning of 2021 (January 1, 2021), LENDER Company made a loan to BORROWER Company and LENDER received in exchange from BORROWER a 3 year, $600,000 note (receivable) with a stated rate of interest of 3%. The market rate of interest for a note receivable with similar risk is currently 5%. REQUIRED: ROUND ALL COMPUTATIONS TO THE NEAREST DOLLAR! You may have a $1.00 rounding difference at the end---don't worry! 1. Compute the PRESENT VALUE (PV) of LENDER Company's note receivable as of the beginning (1-1) of 2021. Follow the examples in your workbook (pages 103-105). Show your calculations. You can do this part with a calculator or use EXCEL to do it for you
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