Viking Farms Harvests Crops in Roughly 90-Day Cycles Based on a 360-Day

question 2

Multiple Choice

Viking Farms harvests crops in roughly 90-day cycles based on a 360-day year. The firm receives payment from its harvests sometime after shipment. Due in part to the firm's rapid growth, it has been borrowing to finance its harvests using 90-day bank notes on which the firm pays 12 percent discount interest. If the firm requires $60,000 in proceeds from each note, what must be the face value of each note?

• A) $61,856
• B) $67,531
• C) $60,000
• D) $68,182
• E) $67,423

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Definitions:

Preschooler

A child typically between the ages of 3 and 5 years old who is in the developmental stage before entering formal schooling.

Psychosocial Stage

Stages of psychological and social development postulated by Erik Erikson, through which an individual progresses throughout their lifetime.

Identity Versus Identity Confusion

Erikson’s fifth developmental stage, which individuals experience during the adolescent years. At this time, adolescents examine who they are, what they are all about, and where they are going in life.

Initiative Versus Guilt

A stage in Erickson's psychosocial development theory where children learn to exercise independence and initiative, but may feel guilt when unsuccessful.