Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-If no interest payments are made on a note, then the difference between the present value of the cash flows associated with the note and the face value of the note represents

Question

Use the present value and future value tables included in Appendix 8 and on the textbook companion website. 
-If no interest payments are made on a note, then the difference between the present value of the cash flows associated with the note and the face value of the note represents

Quizplus · Accepted Answer

The difference between the present value of the cash flows and the face value of a note with no interest payments represents the interest, as it accounts for the time value of money.

Use the Present Value and Future Value Tables Included in Appendix