On December 31, 2020, Sarasota Company signed a $1,035,300 note to Ivanhoe Bank. The market interest rate at that time was 11%. The stated interest rate on the note was 9%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Sarasotas financial situation worsened. On December 31, 2022, Ivanhoe Bank determined that it was probable that the company would pay back only $621,180 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,035,300 loan.

(a)

Determine the amount of cash Sarasota received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e.g. 0.52513 and final answer to 0 decimal places, e.g. 5,275.)

Amount of cash Sarasota received from the loan

$enter a dollar amount of cash Sarasota received from the loan