The Maturity Value of a $16,000 Non-Interest-Bearing, Simple Discount 6

question 76

Multiple Choice

The maturity value of a $16,000 non-interest-bearing, simple discount 6%, 60-day note is:

• A)$16,160
• B)$16,000
• C)$16,610
• D)$16,600
• E)None of these

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Definitions:

Birthday Rule

A means to identify primary responsibility in insurance coverage; identifies the primary insurance carrier when children have coverage through more than one parent. The insurance of the parent with the birthday earliest in the year, month and day only, is identified as the primary insurer. If both parents have the same birth date, the policy that has been in effect the longest is the primary carrier.

Custody

The legal authority or responsibility to care for someone or something, often used in relation to child custody in legal contexts.

Primary

Refers to the first or most significant condition, factor, or level in a series or system.

Medicare

A federal health insurance program in the United States primarily for people who are 65 or older, as well as for certain younger people with disabilities or specific diseases.