Question

On January 1, 2017, Ann Price loaned $233,984 to Joe Kiger. A zero-interest-bearing note (face amount, $320,000) was exchanged solely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2019. The prevailing rate of interest for a loan of this type is 11%. The present value of $320,000 at 11% for three years is $233,984. What amount of interest income should Ms. Price recognize in 2017?

Please explain and do not copy from Chegg. Otherwise, I have to report the answer.