Answer:
$187,908
Step-by-step explanation:
Hint : Use time of Value techniques to calculate the price (today) : January 1, 2021.
Pmt = ($25,000)
n = 5
Fv = ($150,000)
i = 10 %
P/yr = 1
Pv = ?
Using a Financial Calculator, the price (today) that is the PV will be $187,907.87 or $187,908.
Thus the amount at which Barrett should record the note payable and corresponding merchandise purchased on January 1, 2021 will be $187,908.