Answer:
$49,500
Explanation:
Calculation for what amount of interest revenue should be included in North's 2011 income statement
First step is to find Zero-interest-bearing note due balance
Zero-interest-bearing note due balance
=$600,000 *0.75*10%
Zero-interest-bearing note due balance= $45,000
Second Step will be to calculate the interest revenue
Interest revenue=($450,000 + $45,000) *10%
Interest revenue= $495,000*10%
Interest revenue=49,500
Therefore what the amount of interest revenue should be included in North's 2011 income statement is $49,500
Answer:
Q = 150 - 0.025.
Explanation:
Given that
Number of identical consumers = 1,000
Market demand curve is given by
QM = 150,000 - 25P
Based on the above information.
The equation for an individual demand curve is shown below:
As we know that the market demand is the total of an individual demand. So, the 1,000 identical demand function would be there and also we have to divide the market demand curve by $1,000 to find out the individual demand curve
So,
Q = 150 - 0.025 as (150,000 – 25P) ÷ 1000
Q = 150 - 0.025.
Answer:
The present value of the deferred annuity payments that the company will pay to its CEO
Explanation:
This can be calculated using an appropriate discount rate. Suppose the discount rate is 10% and the present value of payment reciept in the year 6, 7, 8, 9 and 10 will be calculated using the following formula:
Present Value = Cash flow * 1/(1+r)^n
PV of Yr 6 payment = $2 million * 1/(1+10%)^6 = $2 million * 0.564= $1.13M
PV of Yr 7 payment = $2 million * 1/(1+10%)^7 = $2 million * 0.513= $1.03M
PV of Yr 8 payment = $2 million * 1/(1+10%)^8 = $2 million * 0.467= $0.933M
PV of Yr 9 payment = $2 million * 1/(1+10%)^9 = $2 million * 0.424= $0.848M
PV of Yr 10 payment= $2 million* 1/(1+10%)^10 = $2 million * 0.386= $0.771M
So the total liability = $1.13M + $1.03M + $0.933M + $0.848M + $0.771M = $4.652. So this is the liability on a discount rate 10% choosen.