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What is the total interest revenue earned over life of note

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Problem 1: Edgar Company purchased a 2,000,000, 8%, five year note that required five equal annual year end payments of 500,900.00. The note was discounted to yield 9%. At the date of the purchase, the entity rexorded the note at the present value of 1,948,500.00. The entity did not elect the fair value option. What is the total interest revenue earned over the life of this note?

Reference no: EM132806528

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