On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of I at 12% for 8 perlods 0.40388 The present value of an ordinary annulty 4.9676| of 1 at 12% for 8 perlods Instructions By how much amount Ihe service revue wil be credited (Please wite yoUr answer without commas or sign of the doliar. Forekample. if your answer is $10.DOO write it 10000)

On July 1, 2017. Agincourt Inc. rendered services in exchange for a 4%. 8-year promissory note having a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest for money that it borrowed from British National Bank. The customer of the above fransaction has credit ratings that require them to borrow money at 12% interest. The present value of I at 12% for 8 perlods 0.40388 The present value of an ordinary annulty 4.9676| of 1 at 12% for 8 perlods Instructions By how much amount Ihe service revue wil be credited (Please wite yoUr answer without commas or sign of the doliar. Forekample. if your answer is $10.DOO write it 10000)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

On July 1, 2017, Agincourt Inc. rendered services in exchange for a 4%, 8-year promissory note having
a face value of $500,000 (interest payable annually). Agincourt Inc. recently had to pay 8% Interest
for money that it borrowed from British National Bank. The customer of the above fransaction has
credit ratings that require them to borrow money at 12% interest.
The present value of 1 at 12% for 8
perlods
0.40388
The present value of an ordinary annuity 4,9676
of 1 at 12% for 8 perlods
Instructions
By hew much amount Ihe service revue wil be credited?
(Please wite your answer without commas or sign of the doliar. For example ifyour answer is SI0.000,
Swrite it 10000)

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