Question

Morgan Co. signs a $50,000 noninterest-bearing 5-year note payable for goods purchased from Xelco Industries. The appropriate rate of interest for this type of note is 10%. At the time the note is signed, what is the present value of the note on Morgan's records

Answer 1

$31,046

Step-by-step explanation:

You take the $50,000 and divide it by 1.10^5 = $31,046