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  3. 19. company a received a five year $25,000 note b

19. Company A received a five year $25,000 note bearing interest of 3%. The...

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Question

Accounting

19.

Company A received a five year $25,000 note bearing interest of 3%. The market rate of the note is 2.5%. What amount of interest revenue will the company record at the end of the first year?

$750

$767

$625

$640

20.

Company X makes a loan in exchange for a two-year, $8,000 note. The stated interest rate is 6%. The market rate is 4%. What amount of premium does the company amortize at the end of the second year? Please round to the nearest whole number.

332

326

148

154

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