Question

On January 1, Harrison Enterprises borrowed $ 40,000 for three years. Harrison signed a noninterest-bearing note. Assuming that the market rate of interest is 9 percent on the date the note is made and that interest is compounded annually, what is the face value of the note? What is the amount of interest expense shown on the budgeted income statement for the first two years? Describe the cash inflows and outflows Harrison must plan for with this note.


$1.99
Sales0
Views60
Comments0
  • CreatedMarch 25, 2015
  • Files Included
Post your question
5000