If a company issues $5,000, 8%, one-year note payable, the amount of cash they receive is closest to:
A)$5,400
B)$4,600
C)$4,630
D)$5,000

Name: If a company issues $5,000, 8%, one-year note payable, the amount of cash they receive is closest to: A)$5,400 B)$4,600 C)$4,630 D)$5,000
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Question

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When a company issues a note payable, the amount of cash they receive is equal to the face value of the note, which in this case is $5,000. Interest is paid over the life of the note, not at the time of issuance.

If a Company Issues $5,000, 8%, One-Year Note Payable, the Amount