Your Accountant Tells You That If You Can Continue to Earn

question 47

Multiple Choice

Your accountant tells you that if you can continue to earn the current interest rate on your balance of $800 for the next two years you will have $898.88 in your account. If your accountant is correct what is the current interest rate?

• A)6 percent
• B)7 percent
• C)8 percent
• D)9 percent

---

Definitions:

Security Interest

A legal claim or right on property as collateral to secure the repayment of a debt or obligation.

Buyer in the Ordinary Course

An individual or entity that purchases goods in good faith, within the normal course of business from a seller who is in the business of selling such goods.

Good Faith

A legal principle that emphasizes honesty, fairness, and integrity in the fulfillment of contractual and legal obligations.

Sale of Goods

A transaction involving the transfer of ownership of tangible personal property from a seller to a buyer for a price.