When Calculating Interest on a Promissory Note of Less Than

question 98

Multiple Choice

When calculating interest on a promissory note of less than one year, with the maturity date stated in terms of days, the

• A)maker pays more interest if 365 days are used instead of 360.
• B)maker pays the same interest regardless if 365 or 360 days are used.
• C)payee receives more interest if 360 days are used instead of 365.
• D)payee receives less interest if 360 days are used instead of 365.

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Definitions:

Social Security

Social Security is a government program that provides financial assistance to retirees, disabled workers, and survivors of deceased workers, primarily funded through payroll taxes.

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Unretired Individuals

Persons who are of an age traditionally associated with retirement but choose to remain in the workforce either full-time or part-time.

Economic Theory

A set of principles and methodologies that economists use to explain and predict economic patterns and behaviors.