On July 1, year 1, a company obtained a two-year 8% note receivable for services rendered. At that time the market rate of interest was 10%. The face amount of the note and the entire amount of the interest are due on June 30, year 3. Interest receivable at December 31, year 1, was a. 5% of the face value of the note. b. 4% of the face value of the note. c. 5% of the July 1, year 1, present value of the amount due June 30, year 3 d. 4% of the July 1, year 1, present value of the amount due June 30, year 3.

The management of a supermarket wants to adopt a new promotional policy of giving a free gift to every customer who spends > a certain amount per visit at this supermarket. the expectation of the management is that after this promotional policy is advertised, the expenditures for all customers at this supermarket will be normally distributed with a mean of $95 and a standard deviation of $20. if the management wants to give free gifts to at most 10% of the customers, what should the amount be above which a customer would receive a free gift?