Jill Just Borrowed $6,000 and Will Be Charged a Simple

question 23

Multiple Choice

Jill just borrowed $6,000 and will be charged a simple interest rate of 12 percent. Jill will pay ________ interest for borrowing the money on September 1 and repaying the money on December 31.

• A) $240
• B) $420
• C) $720
• D) $1,200

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Definitions:

Payee's Name

The name of the individual or entity to whom payment is to be made on a check, draft, or other financial instrument.

Negotiation

The process by which parties discuss their differences, with the aim of reaching an agreement or improving understanding.

Assignment

The passing of property or rights from one individual to another.

Indorsement

The act of signing one's name on the back of a cheque or other negotiable instrument to make it payable to someone else.