example of no_int. loan from 10_11_lecture

example of no_int. loan from 10_11_lecture - Interest...

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Pay cash 200,000 N/P- 0%, 3 yrs 1,000,000 "Alleged" purchase P. 1,200,000 PV Note, assuming 8% reasonable rate 793,832 RECORD THE SALE Real estate 993,832 Net N/P Cash 200,000 N/P 1,000,000 Discount/ def int. 206,168 793,832 END OF YR 1
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Unformatted text preview: Interest expense 63,507 Discount/ deferred int 63,507 857,339 END YR 2 Interest expense 68,587 Discount/ def. inte 68,587 925,926 END YR 3 Interest expense 74,074 Discount/ def. inte 74,074 1,000,000 N/P 1,000,000 Cash 1,000,000...
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