What Amount Can You Borrow If You Make Six Quarterly

question 35

Multiple Choice

What amount can you borrow if you make six quarterly payments of $4,000 at a 12 % annual rate of interest?

• A)$24,838.00
• B)$21,668.80
• C)$31,049.00
• D)$40,000.00
• E)$44,800.00

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Definitions:

Current Liabilities

Short-term financial obligations that are due to be paid within one year, including accounts payable, short-term loans, and taxes payable.

Long-term Debt

Loans or other forms of credit that are due for repayment in more than one year's time.

Long-term Debt

Borrowings of a company that are due for repayment more than one year into the future.

Current Liabilities

Financial obligations that a company is expected to settle within a year, including accounts payable, short-term loans, and accrued expenses.