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Ivy Company Purchases Land with a Fair Market Value of $71,500

Question 3

Multiple Choice

Ivy Company purchases land with a fair market value of $71,500, paying for it by signing a note payable requiring cash payments of $20,000 at the beginning of each year for four years. What is the interest rate implicit in the note?


A) 6%.
B) 7%
C) 8%
D) 9%.

Correct Answer:

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