Kate Davidson Signed a Simple Discount Note for $9,000

question 60

Multiple Choice

Kate Davidson signed a simple discount note for $9,000. The discount rate is 5%, and the term of the note is 18 months. What is the effective interest rate? (Round to the nearest tenth percent)

• A) 5.4%
• B) 6.2%
• C) 4.9%
• D) 3.8%

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Definitions:

Cultural Studies

An interdisciplinary field that examines cultural phenomena, including media, politics, art, and literature, and their roles in societal processes.

Material Culture

The physical objects, resources, and spaces that people use to define their culture.

Postmodernism

An intellectual stance or mode of discourse defined by skepticism toward grand narratives and ideologies, emphasizing the role of language, power relations, and cultural conventions.

Society

A system of social interaction, typically within geographical boundaries, that includes both culture and social organization.