Let's say you were given a loan for $400,000, but only received $300,000 in cash. The difference of $100,000 is assumed (or implied) to be interest. There is no interest rate given, no term length, no payment schedule (e.g. pay X amount monthly or yearly), and no due date. You pay the loan off when you can at any amount you can. How can we record that $100,000 implied interest amount as an amortized amount? Meaning, we don't want to record a lump sum/one-time interest charge of $100,000 in one month. We want to spread that out over time, recording a portion of that interest each month. However, how do you do that when you don't have a term, interest rate, compounding schedule, etc...?
