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:

Production Costs

The total expenses incurred in the process of making or manufacturing goods, including materials, labor, and overhead costs.