Edgemont enterprises holds a note receivable from a regular, Financial Accounting

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Edgemont enterprises holds a note receivable from a regular

Present Value of a Single Payment

Edgemont Enterprises holds a note receivable from a regular customer. The note is for $22,000, which includes principal and interest, and is due to be paid in exactly two years. The customer wants to pay the note now, and both parties agree that 10% is a reasonable annual interest rate to use in discounting the note. How much will the customer pay Edgemont Enterprises today to settle the obligation?

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Financial Accounting: Edgemont enterprises holds a note receivable from a regular

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Financial Accounting: Edgemont enterprises holds a note receivable from a regular

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