What Is the Difference Between the Exact Simple Interest and the Ordinary

question 12

Multiple Choice

What is the difference between the exact simple interest and the ordinary simple interest on a 200-day loan of $5,000 at 12%?

• A) $15.65
• B) $14.16
• C) $6.56
• D) $4.56

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Definitions:

Farm Products

Goods involved in farming operations, including crops, livestock, and products obtained from crops or animals (like milk or wool).

Financing Statement

A document filed to give public notice to third parties of a secured party's interest in the property of a debtor, typically used in securing transactions under the UCC.

Purchase-Money Security Interest

An interest in the property that secures payment or performance of an obligation where the property is purchased, giving the creditor rights in the purchased property.

Collateral

Assets or properties pledged by a borrower to secure a loan or obligation, ensuring the lender can recover the loaned funds in case of default by selling the collateral.