On June 1, 2020, Grouper Corporation approached Silverman Corporation about buying a parcel of undeveloped land. Silverman was asking $270,000 for the land and Grouper saw that there was some flexibility in the asking price. Grouper did not have enough money to make a cash offer to Silverman and proposed to give, in return for the land, a $315,000, five-year promissory note that bears interest at the rate of 5%. The interest is to be paid annually to Silverman Corporation on June 1 of each of the next five years. Silverman insisted that the note taken in return become a mortgage note. Silverman accepted the amended offer, and Grouper signed a mortgage note for $315,000 due June 1, 2025. Grouper would have had to pay 10% at its local bank if it were to borrow the cash for the land purchase. Silverman, on the other hand, could borrow the funds at 9%. Both Grouper and Silverman have calendar year ends. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.