Exhibit 14-10 Elaine, Inc.issued a seven-year non-interest-bearing note with a face value of $20, 000 and received $11, 670.Actuarial information for seven periods is as follows:

-Refer to Exhibit 14-10.Interest expense for the first year is

Question

Exhibit 14-10 Elaine, Inc.issued a seven-year non-interest-bearing note with a face value of $20, 000 and received $11, 670.Actuarial information for seven periods is as follows:
 
-Refer to Exhibit 14-10.Interest expense for the first year is

Quizplus · Accepted Answer

Interest expense for the first year is calculated based on the initial loan amount and the interest rate. In this case, without the specific details from Exhibit 14-10, the correct answer cannot be determined directly from the provided information. However, given the choices, the selection of C) $933.60 suggests that it was calculated based on the given data in the exhibit, which typically involves multiplying the loan amount by the interest rate.