A $10,000, 5% Note Is Dated July 6 and Is

question 127

Multiple Choice

A $10,000, 5% note is dated July 6 and is due in 120 days. Using a 360-day year, the interest payment would be: (Do not round any intermediate calculations. Round your final answer to the nearest dollar.)

• A) $250.
• B) $500.
• C) $333.
• D) $167.

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Definitions:

New Firms

Newly established business entities that often bring innovation, competition, and dynamism to their respective markets.

Long-Run Equilibrium

A state in which all factors of production and prices adjust fully to economic changes, with all markets clearing and no external pressures affecting supply and demand.

Efficient Scale

The quantity of output that minimizes average total cost.

Perfectly Competitive

A market structure characterized by a large number of small firms, homogenous products, and free entry and exit.