If You Borrow $50,000 at an Annual Interest Rate of 12

question 113

Multiple Choice

If you borrow $50,000 at an annual interest rate of 12% for six years,what is the annual payment (prior to maturity) on a discount loan?

• A)$0.00
• B)$6,000.00
• C)$8,333.33
• D)$12,161.29

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Definitions:

Job-order Costing

A cost accounting system used to assign manufacturing costs to an individual product or batches of products, typically used in custom or varied production.

Homogeneous Product

A product that is uniform in quality and indistinguishable from other products of the same type.

Weighted-Average Method

A process costing method that calculates unit costs by combining costs and outputs from the current and prior periods.

Prior Period Costs

Costs that were incurred in a previous accounting period but are recorded or recognized in the current period's financial statements.