Ramos Company Has a 90-Day Note That Carries an Annual

question 64

Multiple Choice

Ramos Company has a 90-day note that carries an annual interest rate of 8%. If the amount of the total interest on the note is equal to $700, then what is the principal of the note?

• A) $8,750
• B) $35,000
• C) $50,400
• D) $22,400

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Definitions:

Immune System

The complex network of cells, tissues, and organs that protect the body against infection and disease.

Stressor

Any stimulus or event that causes stress to an organism, potentially triggering a physical or psychological response.

Gambling

The act of wagering money or goods on the outcome of an event with an uncertain result with the primary intent of winning additional resources.

Optimism

A tendency to maintain a positive outlook and expect the most favorable outcome in situations.