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Please show step by step On January 1, 2007, Oliver Wendell Douglas accepted a 10%, 3-year $200,000 note from Mr. Haney in exchange for cash.

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On January 1, 2007, Oliver Wendell Douglas accepted a 10%, 3-year $200,000 note from Mr. Haney in exchange for cash. Interest on the note is paid annually on December 31. Market interest rate is 12%.

Instructions

(a) Calculate the value of the note on January 1, 2007.

(b) Calculate interest revenue recognized by Oliver for 2007.

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