If a Customer Is Charged 1% Interest for an Invoice

question 7

Multiple Choice

If a customer is charged 1% interest for an invoice that is 30 days, and the invoice amount is in Cell F8, the formula for the new invoice total would be:

• A)=F8*.01.
• B)=F8*1.01%.
• C)=F8*1%.
• D)=F8*101%.

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Definitions:

T-bill Rate

The yield or interest rate paid to investors of U.S. Treasury bills, short-term debt instruments issued by the U.S. government.

Stock Price

The current market price at which a share of a company's stock can be bought or sold.

Black-Scholes Value

A model used to estimate the theoretical price of options and certain other financial instruments.

Call Option

A financial contract giving the buyer the right, but not the obligation, to buy a stock, bond, commodity, or other assets at a specified price within a specific time period.