Business, 06.03.2020 07:12 marchellepenuliar

On December 31, 2020, Buffalo Company signed a $1,278,400 note to Carla Bank. The market interest rate at that time was 10%. The stated interest rate on the note was 8%, payable annually. The note matures in 5 years. Unfortunately, because of lower sales, Buffalo’s financial situation worsened. On December 31, 2022, Carla Bank determined that it was probable that the company would pay back only $767,040 of the principal at maturity. However, it was considered likely that interest would continue to be paid, based on the $1,278,400 loan.

Determine the amount of cash Buffalo received from the loan on December 31, 2020. (Round present value factors to 5 decimal places, e. g. 0.52513 and final answer to 0 decimal places, e. g. 5,275.)

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On December 31, 2020, Buffalo Company signed a $1,278,400 note to Carla Bank. The market interest ra...

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