Picard Orchards Requires a $100,000 Annual Loan in Order to Pay

Multiple Choice

Picard Orchards requires a $100,000 annual loan in order to pay laborers to tend and harvest its fruit crop. Picard borrows on a discount interest basis at a nominal annual rate of 11 percent. If Picard must actually receive $100,000 net proceeds to finance its crop, then what must be the face value of the note?

A) $111,000
B) $100,000
C) $112,360
D) $ 89,000
E) $108,840