On january 1, 2020 abc corporation bought land for 35,000,000. The corporation paid 3,000,000 as down payment and assigned a non interest bearing note for the balance of eight 8 annual installments paid every year and. With first payment december 31, 2020.

Assuming the effective interest rate of 10.5%, present value of an ordinary annuity of 1 for eight periods is 5.23918789. The discount on notes payable is closest to

1. 11043248

2. 12078553

3. 22921447

4. 20956752