On September 1, 2010, the Baker Company Received $44, 940

question 38

Multiple Choice

On September 1, 2010, the Baker Company received $44, 940 from 4-Most Finance Company.To pay off this loan, the Baker Company will have to pay 4-Most $10, 000 each year for ten years.The first payment is due September 1, 2011.Which interest rate compounded annually is Baker paying on this loan?

• A)12%
• B)15%
• C)18%
• D)24%

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Definitions:

Assets Section

Part of a balance sheet that lists and describes an entity's resources or items of value owned.

Merchandising Business

An enterprise that purchases finished goods for resale to generate profit, operating between the producers and end consumers.

Supermarket

A large retail market that sells food and other household goods, typically organized into aisles.

Manufacturing Business

A type of business that produces finished goods from raw materials through the use of labor, machinery, and equipment.