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XYZ Company purchased from ABC Company a P400,000, 8%, five-year note that requires five annual year-end installments of 100, 180. The note was discounted to
XYZ Company purchased from ABC Company a P400,000, 8%, five-year note that requires five annual year-end installments of 100, 180. The note was discounted to yield a 9% rate to XYZ. At the date of purchase, XYZ recorded the note in its present value of P389,700. What is the total unearned interest income will be realized over the term of the financial instrument?
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