On 1/1/2021, Le Corp. makes a loan to Morgan Co. and receives in exchange a THREE-YEAR, $10,000 note bearing interest at 10 percent annually. The market rate of interest for a note of similar risk is 11 percent.

Required:

a). Calculate the price of the note. Show your detail calculation.

Use the time value of money tables:

* Excerpted from Table 6.2. - Present Value of $1 (Present Value of a Single Sum)

Period/Rate	9%	10%	11%	12%
1	0.917	0.909	0.901	0.893
2	0.842	0.826	0.812	0.797
3	0.772	0.751	0.731	0.712
4	0.708	0.683	0.659	0.636
5	0.650	0.621	0.593	0.567

* Excerpted from Table 6.4. - Present Value of an Ordinary Annuity of $1

Period/Rate	9%	10%	11%	12%
1	0.917	0.909	0.901	0.893
2	1.759	1.736	1.713	1.690
3	2.531	2.487	2.444	2.402
4	3.240	3.170	3.102	3.037
5	3.890	3.791	3.696	3.605

b) Record the transaction of purchase of the note by Le Corp. (the buyer of the note).