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kotykmax [81]
3 years ago
15

On January 1, 2017, Ann Price loaned $187,825 to Joe Kiger. A zero-interest-bearing note (face amount, $250,000) was exchanged s

olely for cash; no other rights or privileges were exchanged. The note is to be repaid on December 31, 2019. The prevailing rate of interest for a loan of this type is 10%. The present value of $250,000 at 10% for three years is $187,825. What amount of interest expense should Joe Kiger recognize in 2017? Select one:
a. $25,000
b. $75,000
c. $56,350
d. $18,783
Business
1 answer:
SVEN [57.7K]3 years ago
5 0

Answer:

Option D is correct.

<u>Interest expense in 2017= $18,783</u>

Explanation:

Interest expense in 2017 = 187825*10% = $18782.5( Approx $18,783)  

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The local electronics store is offering a promotion​ "1-year: same as​ cash," meaning that you can buy a tv​ now, and wait a yea
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$961.54

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3 years ago
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$294,412.8

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Answer:

Consider the following explanation

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