A Business Accepts a 12 Percent,$38,000 Note Due in Three

question 185

Multiple Choice

A business accepts a 12 percent,$38,000 note due in three years.Assuming simple interest,how much will the business receive when the note falls due?

• A) $42,560
• B) $51,680
• C) $47,120
• D) $38,000

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Definitions:

Total Output

The complete quantity of goods or services produced by a company, sector, or economy within a given period.

Extra Inputs

Additional resources or factors of production, such as labor or materials, that are used to increase output or efficiency.

Bottleneck

A point of congestion or blockage in a system, process, or production line that significantly delays or prevents progress.

Fixity of Production

The characteristic of production processes where inputs and outputs are fixed in the short term, allowing little flexibility.