For a Note Receivable with a Face Rate of Zero

question 57

Multiple Choice

For a note receivable with a face rate of zero, an implicit rate of 8%, a term of 3 years, a present value of $14,000 and a face value of $17,636, the interest to record at the end of the first year is equal to

• A)$112.
• B)zero.
• C)$1,120.
• D)$1,411.

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Definitions:

Tougher Penalties

Increased severity of punishments or consequences for criminal activities aimed at deterring crime.

Crime Rates

The number of crimes committed per unit of population within a specified time period.

Prison

A facility in which people are forcibly held and denied a range of personal freedoms under the authority of the state as punishment for crimes.

Moral Panic

A widespread fear, often irrational, among the general public that some evil threatens the well-being of society, typically driven by media amplification.