When Calculating Interest on a Promissory Note with the Maturity

question 53

Multiple Choice

When calculating interest on a promissory note with the maturity date stated in terms of days, the

• A)maker pays more interest if 365 days are used instead of 360.
• B)maker pays the same interest regardless if 365 or 360 days are used.
• C)payee receives more interest if 360 days are used instead of 365.
• D)payee receives less interest if 360 days are used instead of 365.

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Definitions:

Methyl Acetate

A volatile, flammable liquid ester of acetic acid and methanol, used as a solvent in coatings, paints, and adhesives.

Acetyl Chloride

A colorless, corrosive liquid acyl chloride used as an acetylating agent in organic synthesis.

Mechanism

A detailed step-by-step description of how a chemical reaction proceeds at the molecular level.

NaCN

Sodium cyanide, a white solid highly soluble in water, used in organic synthesis and metal processing.