If the Interest Rate on a Note Is 10

question 40

Multiple Choice

If the interest rate on a note is 10.5% and the principal was $60,000, what is the maturity value of the note, if the term of the note is 7 months? (Round your final answer to the nearest dollar.)

• A)$60,000
• B)$63,675
• C)$66,300
• D)$62,625

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Definitions:

Average Service Rate

The average number of customers or units that can be processed over a certain time frame in a service system.

Expected to Stay

An estimation of the duration or likelihood that an individual or item remains in a particular state or location.

M/D/1

M/D/1 is a queueing model designation indicating a system with a Poisson arrival process (M), deterministic service times (D), a single server (1), and exponential service times.

Constant Service Time

A situation where the time required to serve a customer or complete a process is the same each time, allowing for predictable scheduling and planning.