On February 1, Triple H Enterprises issues a $50,000 six-month note payable to MBO bank. It is a zero-interest-bearing note and the bank's discount rate is 4%. How much interest expense is recognized upon maturity? (Round to the nearest dollar.)

Question 5Select one:

a.

None, this is a zero-interest bearing note.

b.

$980

c.

$1,000

d.

$2,000