Final answer:
The account for the built-in interest of a zero-interest note is called 'Discount on Notes Payable'. It represents the interest on the note through the difference between the issue price and face value.
Step-by-step explanation:
The account used to record the interest that accrues on a zero-interest note is typically referred to as Discount on Notes Payable. This discount represents the difference between the cash received when the note was issued, and its face value at maturity. Since the note does not technically pay interest (thus called a zero-interest note), the discount effectively serves as the interest on the note. It's amortized over the life of the note, moving the carrying amount of the note closer to its face value as it reaches maturity.