The Total Amount of Interest Calculated Annually on a $7,000

question 103

Multiple Choice

The total amount of interest calculated annually on a $7,000 promissory note payable for 3 years at 12% that is not Compounded is

• A) $280
• B) $840
• C) $2,520
• D) $8,260

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Definitions:

Expected ROE

The anticipated return on equity, which measures a corporation's profitability by revealing how much profit a company generates with the money shareholders have invested.

Market-capitalization Rate

The discount rate derived from the market capitalization of a company, used to determine the present value of its future earnings.

Product Life Cycles

The stages through which goods typically go through from development to withdrawal from the market, including introduction, growth, maturity, and decline.

Required Rate Of Return

This is the minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular project or investment.