On September 1, 2012, a company borrowed $800,000 from its CEO at an annual interest rate of 10% by issuing a note to the CEO. The repayment schedule calls for eight annual principal repayments of $100,000 each August 31 until fully repaid. Additionally, interest is paid annuallyon every August 31st.

I do not understand why interest payable in the non-current liabilities will be 0, could you please explain this.