A $20,000, 5%, 9-Month Note Payable Requires an Interest Payment

question 50

True/False

A $20,000, 5%, 9-month note payable requires an interest payment of $750, if interest is due at maturity.

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Definitions:

Capacity to Contract

The legal ability of an individual or entity to enter into a binding contract, having the necessary age, mental state, and authority.

Intoxicated

A state of impairment or being under the influence of alcohol or drugs, which can affect a person's physical and cognitive abilities.

Incapacity

A physical or mental condition that makes an individual unable to manage their own affairs or to understand the nature and effects of their actions.

Married Women

Women who are legally joined in marriage to a spouse, often subject to specific legal rights and obligations distinct from unmarried women.