Ron Sewert owes $30,000 on a non-interest- bearing note due January 1, 2017. He offers to pay the amount on January 1, 2007 provided that it is discounted at 10% on a compound annual discount basis. What Iwould he have to pay on January 1, 2007 under this assumption?

Ron Sewert owes $30,000 on a non-interest- bearing note due January 1, 2017. He offers to pay the amount on January 1, 2007 provided that it is discounted at 10% on a compound annual discount basis. What Iwould he have to pay on January 1, 2007 under this assumption?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter14: Financing Liabilities: Bonds And Long-term Notes Payable

Section: Chapter Questions

Problem 28E: On January 1, 2019, Northfield Corporation becomes delinquent on a 100,000, 14% note to First...

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Accounting question

Ron Sewert owes $30,000 on a non-interest-
bearing note due January 1, 2017. He offers
to pay the amount on January 1, 2007
provided that it is discounted at 10% on a
compound annual discount basis. What
Iwould he have to pay on January 1, 2007
under this assumption?

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