Pace CoBorrowed $25,000 at a Rate of 7

question 24

Multiple Choice

Pace Co.borrowed $25,000 at a rate of 7.25%,simple interest,with interest paid at the end of each month.The bank uses a 360-day year.How much interest would Pace have to pay in a 30-day month?

• A)$136.32
• B)$143.49
• C)$151.04
• D)$158.59

---

Definitions:

Operating Decisions

Choices made by management regarding daily operations of a business that affect its efficiency and effectiveness.

Top Management

The highest level of management in an organization, responsible for making strategic decisions.

Decentralization

The distribution of decision-making powers from central authority to individuals or units at lower levels within an organization or state.

Responsibility Accounting

The process of measuring and reporting operating data by areas of responsibility.