On January 1, 2017, Susan Hong lent $60,104 to Ben Bachu.A zero-interest-bearing note (face amount, $80,000) was exchanged solely for cash; no other rights or privileges were exchanged.The note is to be repaid on December 31, 2019.The market rate of interest for a loan of this type is 10%.To the nearest dollar, and using the effective-interest method, how much interest revenue should Ms.Hong recognize in 2017?
A) $ 6,010
B) $ 8,000
C) $18,030
D) $24,000
Correct Answer:
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