If $5,000 Is Borrowed on a Discount Basis and the Rate

question 98

Multiple Choice

If $5,000 is borrowed on a discount basis and the rate is 10 percent, the annual percentage interest rate on this loan would be

• A) 10 percent.
• B) 10.1 percent.
• C) 11 percent.
• D) 11.1 percent.

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Definitions:

Philanthropic Goodwill

The positive reputation and support a business gains through charitable acts, donations, and community service.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual, often guiding its strategies and actions.

Utilitarianism

A philosophical theory that suggests actions are right if they are useful or for the benefit of a majority, focusing on the outcome or consequences of actions to determine their morality.

Ethical Standards

Guidelines or principles that govern the conduct of individuals and organizations in a way that is morally right and good, often based on societal norms and professional codes of conduct.