What Is the Interest Cost and the Total Amount Due

question 39

Multiple Choice

What is the interest cost and the total amount due on a six-month loan of $1,500 at 13.2% simple annual interest?

• A) $99; $1,500
• B) $99; $1,599
• C) $198; $1,698
• D) $198; $1,500

---

Definitions:

Fiduciary Duty

An obligation to act in the best interest of another party, such as that of a trustee towards a beneficiary.

Vicarious Liability

Refers to a legal principle where an entity (such as an employer) can be held responsible for the actions or omissions of another person (like an employee), under certain conditions.

Sole Proprietorships

A business structure where a single individual owns, manages, and is personally responsible for all aspects of the business.

Ratified Inadvertently

Approved or confirmed accidentally or without the full intention to do so.