A $7,300, 11

question 18

Multiple Choice

A $7,300, 11.9% note is dated April 21 and is due in 60 days. The amount of interest on the due date of the note would be

• A) $119.00.
• B) $60.00.
• C) $73.00.
• D) $144.78.

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Definitions:

Decision Making

The method of selecting options through recognizing a decision, collecting data, and evaluating different solutions.

Net Benefits

The total positive effects or gains from a decision or action minus any negative effects or costs associated with it.

Prospect Theory

A behavioral economics theory of preferences having three main features: (1) people evaluate options on the basis of whether they generate gains or losses relative to the status quo; (2) gains are subject to diminishing marginal utility, while losses are subject to diminishing marginal disutility; and (3) people are prone to loss aversion.

Salary

A form of payment from an employer to an employee, which may be specified in an employment contract.