On January 1, 2020, a borrower signed a long-term note, face amount, $40,000; time to maturity, three years; stated rate of interest, 8%. The market rate of interest of 10% determined the cash received by the borrower. The note will be paid in three equal annual installments of $15,521 each December 31 (which is also the end of the accounting period for the borrower).

Required

a. Compute the cash received by the borrower and prepare a debt amortization schedule.

• Note: Round your answer to the nearest whole dollar.

1. Compute the cash received by the borrower.

2. Prepare a debt amortization schedule.