I'm looking for an explanation about where they found the present value of 12,089 in the second part of the solution.

On July 1, 2020, Blossom Inc. made two sales. 1. It sold land having a fair value of $ 910,080 in exchange for a 4-year zero-interest-bearing promissory note in the face amount of $ 1,432,024. The land is carried on Blossom's books at a cost of $ 591,300. 2. It rendered services in exchange for a 3%, 8-year promissory note having a face value of $ 402,980 (interest payable annually). Blossom Inc. recently had to pay 8% interest for money that it borrowed from British National Bank. The customers in these two transactions have credit ratings that require them to borrow money at 12% interest. Record the two journal entries that should be recorded by Blossom Inc. for the sales transactions above that took place on July 1, 2020. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. July 1, 2020 Notes Receivable 1432024 Discount on Notes Receivable 521944 Land 591300 Gain on Disposal of Land 318780 2. July 1, 2020 Notes Receivable 402980 Discount on Notes Receivable 84864 Service Revenue 318116 1. Computation of the discount Face value of note $ 1,432,024 Present value of 1 for 4 periods at 12% 0.63552 Present value of note $ 910,080 Face value of note 1,432,024 Discount on notes receivable $ 521,944 2. Computation of the present value of the note: Maturity value $ 402,980 Present value of $ 402,980 due in 8 years at 12%-$ 402,980 x 0.40388 $ 162,756 Present value of $ 12,089 payable annually for 8 years at 12% annually-$ 12,089 x 4.96764 60,054 Present value of the note 222,810 Discount on notes receivable $ 180,170