Problem 5-9 (Algo) Noninterest-bearing note; annuity and lump-sum payment [LO5-3, 5-8] On January 1, 2024, The Barrel Company purchased merchandise from a supplier. Payment was a noninterest-bearing note requiring five annual payments of $21,000 on each December 31 beginning on December 31, 2024, and a lump-sum payment of $110,000 on December 31, 2028. An 11% interest rate properly reflects the time value of money in this situation.