TropiKana Inc

question 85

Multiple Choice

TropiKana Inc., a U.S firm, has just borrowed $1,000,000 to make improvements to an Italian fruit plantation and processing plant. If the interest rate is 6.00% per year, how much interest will they pay in the first year?

• A) $6,000
• B) $60,000
• C) $600,000
• D) €60,000

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Definitions:

Defect Of Title

A legal issue with the ownership rights of property or real estate, making the transfer of a clear title to the property problematic.

Holder In Due Course

A legal term referring to a person who has received a negotiable instrument in good faith and for value, and thus has certain protections against defenses and prior claims to the instrument.

Endorser

A person who signs a document (usually on its back) transferring their rights to another person.

Negotiable Instruments

Financial documents that guarantee the payment of a specific amount of money, either on-demand or at a set time, with the payer's name written on it.