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A Five-Year, Non-Interest-Bearing, $5,000 Note, Dated January 1, 2017, Has

Question 87

Multiple Choice

A five-year, non-interest-bearing, $5,000 note, dated January 1, 2017, has a present value of $3,917. The market rate of interest is 5%. Interest expense for the period ending December 31, 2017, is


A) $392.
B) $196.
C) $250.
D) $217.

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