I am trying to figure the Interest Revenue for the following question: On January 1, Jessica Marie Company sold equipment to Gwang Ju Company for 20,000,000 Korean won, with payment to be received in two years on January 1, 2010. The exchange rate on January 1, 2008, is 800 won=$1. On the same date, Jessica Marie enters inot a future contract and agrees to sell 20,000,000 won on January 1, 2010, at the same rate pf 800 won-$1. On December 31, 2008, the exchange rate is 790 won-$1. On December31, 2009, the exchange rate 830 won=$1. The appropriate discount rate throughout this period is 10%. I tried this on Excel and did Insert Function and calculated this way:
PV=10%,1 pymt, pymt amount 25316, and came up with 2301.45 to figure the Interest Earned for 2008. Please help. thanks