Lewis Company receives a $75,000, 6-year note bearing interest of 8% (paid annually) from a customer at

Question:

Lewis Company receives a $75,000, 6-year note bearing interest of 8% (paid annually) from a customer at a time when the discount rate is 9%. What is the present value of the note received by Lewis Company?

Discount Rate
Depending upon the context, the discount rate has two different definitions and usages. First, the discount rate refers to the interest rate charged to the commercial banks and other financial institutions for the loans they take from the Federal...