Exhibit 14-10 Elaine, Inc. issued a seven-year non-interest-bearing note with a face value of $20,000 and received $13,301. Actuarial information for seven periods is as follows:
-Refer to Exhibit 14-10. The implied interest rate is

Question

Exhibit 14-10 Elaine, Inc. issued a seven-year non-interest-bearing note with a face value of $20,000 and received $13,301. Actuarial information for seven periods is as follows: 
-Refer to Exhibit 14-10. The implied interest rate is

Quizplus · Accepted Answer

The implied interest rate is 6% because the present value of the future cash flows is equal to the face value of the note.