XYZ Corporation Borrowed $100,000 for Six Months from the Bank

question 59

Multiple Choice

XYZ Corporation borrowed $100,000 for six months from the bank. The rate is prime plus 2 percent. The prime rate was 8.5 percent at the beginning of the loan and changed to 9 percent after two months. This was the only change. How much interest must XYZ corporation pay?

• A) $2,476
• B) $5,417
• C) $18,212
• D) $21,500

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Definitions:

Unconscious Thoughts

Mental processes not immediately available to consciousness, influencing behaviors and perceptions without one's awareness.

Psychoanalyst

A therapist who practices psychoanalysis, a method of mental therapy developed by Sigmund Freud, focusing on exploring unconscious conflicts.

Free Association

A psychoanalytic technique in which the patient says whatever comes to mind to uncover subconscious thoughts and feelings.

Unconscious Mind

The part of the mind that contains desires, memories, and information that are not easily accessible through conscious thought.