The Total Amount of Simple Interest Calculated Annually on a $4,000

question 29

Multiple Choice

The total amount of simple interest calculated annually on a $4,000 note payable in 5 years at 9% is:

• A) $2,154.60
• B) $1,800.00
• C) $1,411.20
• D) $554.04

Understand the use and legal implications of substitute checks and the rights of consumers when errors occur.

Grasp the sequence of liability in check endorsements and the chain of collection among banks.

Evaluate the advantages and risks of using credit and debit cards, especially in online transactions.

Understand the importance of knowing the audience in preparing and delivering presentations.

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Definitions:

Market Price

The current value at which an asset or service can be bought or sold in a transaction between willing parties.

Shares

Portions of ownership in a company or finance asset, ensuring equitable division of profits through dividends, whenever they are declared.

No-Par Common Stock

Common stock issued without a par value, where the board of directors decides the selling price.

Stated Value

A value assigned to a security or asset which is not determined by market forces.