Market rate of interest for a note

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On December 31, 2020, a company sells goods to a customer, accepting $5,000 immediate cash payment and agreeing to accept the balance as a non-interest-bearing note due in four equal installments of $3,000, payable each subsequent December 31. The market rate of interest for a note of similar risk is 9%. How much interest income will the company recognize in total over the 4-year life of the note?

Reference no: EM133112942

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