Suppose You Take Out a Loan for $9,000, at 12

question 2

Multiple Choice

Suppose you take out a loan for $9,000, at 12% ordinary interest. If the amount of interest is $762.00, what is the time period? (Round any fraction to the next higher day)

• A) 246 days
• B) 250 days
• C) 254 days
• D) 258 days

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Definitions:

Residual Income

Represents the net income that an organization or division generates beyond its required minimum rate of return, highlighting a surplus of financial performance.

Responsibility Accounting

A system of accountability in which managers are held responsible for those items of revenue and cost—and only those items—over which they can exert significant control. The managers are held responsible for differences between budgeted and actual results.

Manager

A manager is an individual responsible for directing and administering an organization's or department's activities and strategies.

Operations

The day-to-day activities involved in the running of a business or production of goods and services.