On September 1, 2023, Cullumber Ltd. purchased equipment for $42,000 by signing a two-year note payable with a face value of $42,000 due on September 1, 2025. The going rate of interest for this level of risk was 9%. The company has a December 31 year end. (The tables in this problem are to be used as a reference for this problem.)

Click here to view Table A.2 - PRESENT VALUE OF 1 - (PRESENT VALUE OF A SINGLE SUM) Click here to view Table A.4 - PRESENT VALUE OF AN ORDINARY ANNUITY OF 1

Calculate the cost of the equipment, where necessary using any of the three methods (tables, financial calculator, or Excel), assuming the note is as follows: (Round factor values to 5 decimal places, e.g. 1.25124 and final answers to 0 decimal places, e.g. 5,275.)

1. An 9% interest-bearing note, with interest due each September 1.

2. A 2% interest-bearing note, with interest due each September 1.

3. A noninterest-bearing note. Cost of the Equipment 1

. An 9% interest-bearing note $enter a dollar amount rounded to 0 decimal places 42000 Correct answer

2. A 2% interest-bearing note $enter a dollar amount rounded to 0 decimal places 38920.0476 Incorrect answer

3. A noninterest-bearing note $enter a dollar amount rounded to 0 decimal places 35350.55972