Trader Trust Accepts a $500,000 Non-Interest Bearing 10-Year Note from Coffee

question 124

Multiple Choice

Trader Trust accepts a $500,000 non-interest bearing 10-year note from Coffee Co. in exchange for Cash on 1/1/19. Coffee Co. promises to repay $500,000 at maturity. The market rate on 1/1/19 was 4%. How much Interest Revenue will Trader Trust record on this note in 2019?

• A) $0, this is a non-interest bearing note receivable.
• B) $13,511
• C) $20,000
• D) $13,891

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Definitions:

Parasitism Success

The effectiveness with which a parasite is able to infect, exploit, and potentially reproduce within its host organism.

Heritable Trait

A characteristic or feature of an organism that can be passed from one generation to the next through genes.

Virulence Evolution

The process by which the harmfulness or pathogenicity of an organism changes over time, often in response to host immunity or treatments.

Population Size

The number of individuals of a species living within a specific area or ecosystem at a given time.