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

question 95

Multiple Choice

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

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

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Definitions:

Implied Trust

A trust not created by explicit words but inferred by law to avoid injustice or to reflect the presumed intention of the parties involved.

Unjust Enrichment

A legal principle where one party is unjustly benefited at the expense of another, often requiring restitution to the party disadvantaged.

Express Trust

A trust explicitly created by a trustor, typically in written form, specifying the beneficiary and terms of the trust.

Estate Plan

A comprehensive approach to managing an individual's assets and financial affairs during their lifetime and distributing assets upon their death.