The Face Value on a Loan Is $8,000, the Interest

question 24

Multiple Choice

The face value on a loan is $8,000, the interest is 10%, and the time is 5 months based on a 360-day year. The bank discounted the note at 12% two months before the maturity of the loan. What is the bank discount?

• A) $686.67
• B) $333.33
• C) $267.14
• D) $166.67

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Definitions:

Risk Taking

The act of undertaking actions that involve uncertainty or potential loss, with the expectation of achieving gain or growth.

Compensation

The total amount of the financial and non-financial pay offered to an employee by an employer in return for work performed as required.

Commission

A form of payment to a salesperson, broker, or agent, typically a percentage of the sales their efforts have generated.

Organizational Culture

Organizational Culture encompasses the values, beliefs, behaviors, and practices that characterize the social and psychological environment of an organization.