Intermediate Account

On January 1, 2021, Arezzo Company received a 10%, P14,000,000, note collectible in installment plus interest every December 31 of each year until December 31, 2025. The note is collectible in principal as follows: December 31, 2021 P4,000,000 December 31, 2022 3,500,000 December 31, 2023 3,000,000 December 31, 2024 2,500,000 December 31, 2025 1,000,000 The interest effective on January 1, 2021 is at 14%, on December 31, 2021 is at 15%. How much is the initial present value of the note receivable when received on January 1, 2021? O P12.921.826 O P12,098.192 P11.326.352 P10.226.392