Interest Due on a $7,000, 10%, 9-Month Note Is

question 4

Multiple Choice

Interest due on a $7,000, 10%, 9-month note is:

• A) $525.
• B) $7,000.
• C) $7,525.
• D) $6,475.

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Definitions:

Explicit Cost

Direct, out-of-pocket payments for resources employed in the production of goods or services.

Marginal Cost

The additional cost incurred by producing and selling one more unit.

Fixed-Cost Fallacy

Consideration of costs that do not vary with the consequences of your decision (also known as the sunk-cost fallacy).

Depreciation Costs

The allocation of the cost of a tangible asset over its useful life, representing the decline in value due to wear and tear, age, or obsolescence.