Financial Accounting
Financial Accounting
7th Edition
ISBN: 9781118162286
Author: Kimmel, Paul D.
Publisher: John Wiley & Sons Inc
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Chapter AD, Problem AD.18BE
To determine

Present Value: The value of today’s amount to be paid or received in the future at a compound interest rate is called as present value. The following formula is used to calculate the present value of an amount:

Present value of an amount =Future value (1+interest rate)number of periods

To Determine: The cash proceeds receive by J Company from the issuance of the note.

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