Picard Orchards Requires a R100,000 Annual Loan in Order to Pay

question 12

Multiple Choice

Picard Orchards requires a R100,000 annual loan in order to pay laborers to tend and harvest its fruit crop.Picard borrows on a discount interest basis at a simple annual rate of 11 percent.If Picard must actually receive R100,000 net proceeds to finance its crop, then what must be the face value of the note?

• A) R111,000
• B) R100,000
• C) R112,360
• D) R89,000
• E) R108,840

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Definitions:

Ligament

Strap of dense connective tissue that holds bones together at a joint.

Connective Tissue

Animal tissue with an extensive extracellular matrix; provides structural and functional support.

Cartilage

Connective tissue that consists of cells surrounded by a rubbery matrix.

Spongy Bone Tissue

A type of bone tissue found at the ends of bones and in the interior of vertebrae, characterized by a porous, honeycomb structure that is lighter and less dense than compact bone.