What interest receivable on december of the current year is

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Question 1: On July 1 of the current year, an entity obtained a two- year 8% note receivable for services rendered. At that time, the market rate of interest was 10%. The face amount of the note and the entire amount of interest are due on the date of maturity. Interest receivable on December 31 of the current year is

Option 1: 5% of the face amount of the not

Option 2: 4% of the face amount of the note

Option 3: 5% of the present value of the note

Option 4: 4% of the present value of the note

Reference no: EM132586678

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