[The Following Information Applies to the Questions Displayed Below

question 64

Multiple Choice

[The following information applies to the questions displayed below.]
On January 1, Year 1, Niagara Corporation arranges a $6,000 line of credit with Centennial Bank. It accepted the bank's offer of 1% above the prime rate with interest payments on December 31 of each year. All borrowings and repayments are to take place on January 1 of each year.
-North Woods Company has a line of credit with Olympia State Bank.North Woods agreed to pay interest at an annual rate equal to 2% above the bank's prime rate.Funds are borrowed or repaid on the first day of each month and interest is paid in cash on the last day of each month.Borrowing is shown as a positive amount,and repayments are shown as negative amounts indicated by parentheses.Activity to date is given as follows:

What is the amount of interest paid at the end of March?

• A) $150
• B) $300
• C) $267
• D) $250

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Definitions:

Hand Gestures

Movements of the hands and arms that are used to communicate expressions, emotions, or information without verbal speech.

Object Permanence

The understanding that objects continue to exist even when they cannot be seen, heard, or otherwise sensed, which is an important milestone in cognitive development.

Schema

In cognitive psychology, a pattern of thought or behavior that organizes categories of information and the relationships among them.

Covered Up

Refers to actions taken to conceal, hide, or obscure something, typically to prevent information or the truth from being known.