Branson Inc. has sold product to the Brandywine Company, a major customer, for $20,000. As a courtesy

Question:

Branson Inc. has sold product to the Brandywine Company, a major customer, for $20,000. As a courtesy to Brandywine, Branson has agreed to take a note due in two years for half of the amount due.
a. What is the effective price of the transaction to Branson if the interest rate is:
(1) 6%,
(2) 8%,
(3) 10%,
(4) 12%?
b. Under what conditions might the effective price be even less as viewed by Brandywine?