A five-year, non-interest-bearing, $5,000 note, dated January 1, 2010, has a present value of $3,917. The market rate of interest is 5%. Interest expense for the period ending December 31, 2010, is
A) $392.
B) $196.
C) $250.
D) $217.

Name: A five-year, non-interest-bearing, $5,000 note, dated January 1, 2010, has a present value of $3,917. The market rate of interest is 5%. Interest expense for the period ending December 31, 2010, is A) $392. B) $196. C) $250. D) $217.
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Question

Quizplus · Accepted Answer

$3,917 x 5% = $196

A Five-Year, Non-Interest-Bearing, $5,000 Note, Dated January 1, 2010, Has