The Simple Interest Note Was Discounted at 15

question 71

Multiple Choice

The simple interest note was discounted at 15%. Find the discount period in days and the proceeds.
-Loan made: Jan 7
Face value: $2,600
Length of loan: 120 days
Rate: 12%
Date of discount: Mar 7

• A)61 days, $2,545.92
• B)61 days, $2,531.27
• C)61 days, $2,635.27
• D)60 days, $2,649.92

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Definitions:

Total Variable Costs

The sum of all costs that vary directly with the level of production, such as materials and labor directly involved in the production process.

Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that suppliers are willing to sell.

Production Functions

Mathematical relationships expressing the output of a firm, an industry, or an entire economy as a function of inputs.

Industry Supply Curve

A graph showing the relationship between the price of a good and the total output of the industry that produces it.