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Jaguar Company sells service contracts that are paid immediately by the customer. Each contract is sold for P500. In the past few years, Jaguar provides services to their customers 30% evenly during the first year, 60% evenly the second year and 10% evenly during the final year.
Problem 1: For the years 2020 and 2021, 3,000 and 5,000 service contracts were sold, respectively. How much is the revenue recognized for 2021?
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