How Much Interest Will Accrue Over Three Months on a $10,000,9

question 56

Multiple Choice

How much interest will accrue over three months on a $10,000,9% loan?

• A)$300
• B)$225
• C)$900
• D)$2,700

---

Definitions:

Acknowledging A Debt

An act by which a debtor recognizes their debt and reaffirms their obligation to pay it, often to prevent the statute of limitations from expiring.

Negotiability

The characteristic of a document (such as a check or note) signifying that it can be transferred from one person to another in a manner that the recipient takes it free of most defenses that could be raised by the original maker or drawer.

Agent's Signature

The signature of a person who is authorized to act on behalf of another, indicating consent or agreement in a contractual context.

Maker

In the context of contracts, the party who creates or signs a promissory note to pay a certain amount of money to another party.