Horatio owes Interstate Bank $10,000 for charges made on his…

Horatio owes Interstate Bank $10,000 for charges made on his Interstate Bank credit card.  Interstate Bank contacts Horatio and offers him an agreement whereby if Horatio pays Interstate Bank $5,000 of the $10,000 amount due, Interstate Bank would deem the debt paid in full. Horatio agrees and pays $5,000 to Interstate Bank.  The parties have agreed to an: