Question

On January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000 zero-interest bearing note due in 4 years. The effective interest rate for a note of this type is 15 percent. How much revenue does Hideki recognize on January 1, 2022?

Answer 1

Hideki recognizes a $17,490.06 revenue.

Revenue

Given that on January 1, 2022 Hideki Matsuyama provides services in exchange for a $10,000 zero-interest bearing note due in 4 years, and the effective interest rate for a note of this type is 15 percent, to determine how much revenue does Hideki recognize on January 1, 2022 the following calculation must be made:

• 10000 x 1.15^4 = X
• 10000 x 1.749 = x
• 17490.06 = X

Therefore, Hideki recognizes a $17,490.06 revenue.

Learn more about revenue in brainly.com/question/14695611