On January 1, 2020, Marigold Corp. exchanged equipment for a $650000 zero-interest-bearing note due on January 1, 2023. The prevailing rate of interest for a note of this type at January 1, 2020 was 12%. The present value of $1 at 12% for three periods is 0.71. What amount of interest revenue should be included in Marigold's 2021 income statement
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Ответ:
$62,026
Explanation:
Calculation for What amount of interest revenue should be included in Marigold's 2021 income statement
First step is to calculate present value of note
Present value of note=$650,000 × .71
Present value of note= $461,500
Second step is to calculate the increase in Present value of note
Increase in Present value of note =$461,500 × 1.12
Increase in Present value of note= $516,880
Now let calculate amount of interest revenue
Interest revenue=$516,880 × 0.12
Interest revenue= $62,026
Therefore What amount of interest revenue should be included in Marigold's 2021 income statement is $62,026
Ответ:
The following value is twice the previous value and it will continue on and on and on.
A sequence is convergent when it has a limit.