Fudge Ltd.receives a four-year, $100,000 zero-interest bearing note.The present value of this note is $65,873.10.Assuming the note was issued on January 1, 2013, and the effective interest method is used, the interest income to be recognized for calendar 2013 will be
A) $11,000.00.
B) $ 9,000.46.
C) $ 7,246.04.
D) $ 6,587.31.
Correct Answer:
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