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On January 1, 2020, Company A made a loan to Company B and receives in exchange a five- year, $200,000 note bearing interest at 6%
On January 1, 2020, Company A made a loan to Company B and receives in exchange a five- year, $200,000 note bearing interest at 6% annually. The market rate of interest for a note of similar risk is 12%. Interests are received semiannually on July 1 and January 1; the first one will be received on July 1, 2020. How much interest revenue should be recorded by Company A on July 1, 2020? (Round your final answer to the nearest dollar; do not include dollar sign and comma) Present value table factors are: Present value of 1 for 5 periods at 6% 0.74726 Present value of 1 for 5 periods at 12% 0.56743 Present value of 1 for 10 periods at 3% 0.74409 Present value of 1 for 10 periods at 6% 0.55839 Present value of an ordinary annuity of 1 for 5 periods at 6% 4.21236 Present value of an ordinary annuity of 1 for 5 periods at 12% 3.60478 Present value of an ordinary annuity of 1 for 10 periods at 3% 8.53020 Present value of an ordinary annuity of 1 for 10 periods at 6% 7.36009
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