On March 9, 2023, Erwin Corp. performed services in exchange for a 6-year non- interest-bearing note...

  

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On March 9, 2023, Erwin Corp. performed services in exchange for a 6-year non- interest-bearing note with a face value of $75,000. The note's face value is due to be paid back six (6) years from the note's issuance date. Erwin uses a discount rate of 8% compounded annually on non-interest-bearing notes of this nature. A. Using either your financial calculator or Excel, what is the present value of this note on the issuance date? Round the answer to the nearest whole dollar. Indicate the variables used below. (3 pts) B. (30-second question) How much total interest will Erwin earn over the life of this note? (Note: This should be a very simple calculation. There should be no need to do an amortization schedule or journal entries to answer this quick question) (3 pts) On March 9, 2023, Erwin Corp. performed services in exchange for a 6-year non- interest-bearing note with a face value of $75,000. The note's face value is due to be paid back six (6) years from the note's issuance date. Erwin uses a discount rate of 8% compounded annually on non-interest-bearing notes of this nature. A. Using either your financial calculator or Excel, what is the present value of this note on the issuance date? Round the answer to the nearest whole dollar. Indicate the variables used below. (3 pts) B. (30-second question) How much total interest will Erwin earn over the life of this note? (Note: This should be a very simple calculation. There should be no need to do an amortization schedule or journal entries to answer this quick question) (3 pts)

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A Calculation of present value of 6year noninterestbearing note Present value PV FV 1 r n ... View the full answer