On January 1, 2009, Ilia Tool Company issued a $1,000,000 non-interest bearing note, which is priced in the market to yield 5% annually. The note had a two-year maturity, that is, on December 31, 2010, Ilia Tool Company will make a payment of $1,000,000 to settle the liability. Required:
a. How much would Ilia Tool Company receive from the note issuance? Write down the valuation equation.
b. How much interest expense should Ilia Tool Company record in 2009? Write down the equation used to calculate the interest expense.

What is the difference between total utility and marginal utility? a. marginal utility is subject to the law of diminishing marginal utility while total utility is not. b. total utility represents the consumer optimum while marginal utility gives the total utility per dollar spent on the last unit. c. total utility is the total amount of satisfaction derived from consuming a certain amount of a good while marginal utility is the additional satisfaction gained from consuming an additional unit of the good. d. marginal utility represents the consumer optimum while total utility gives the total utility per dollar spent on the last unit.