Answer:
Present value of Note = $102,087
Step-by-step explanation:
Non interest bearing note is not required the borrower to pay interest on the loan. So,
Present value of Note on carter's record:
Future Value = Present value x ( 1 + rate of interest )^tenure of Note
FV = PV x (1+r)^n
$150,000 = PV x ( 1 + 8% )^5
$150,000 = PV x ( 1 + 0.08 )^5
$150,000 = PV x ( 1.08 )^5
$150,000 = PV x 1.4693281
PV = $150,000 / 1.4693281
Present Value = $102,087.48