A Company Borrows $10,000 from the Bank at 10% Interest

question 79

Multiple Choice

A company borrows $10,000 from the bank at 10% interest for sixty days.$10,000 is the ________ of the note.The maturity value of the note is ________.

• A)maturity value; 10,164
• B)present value; 10,000
• C)future value; 10,000
• D)principal; $10,164

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Definitions:

Reward Power

The ability to influence others by offering something desirable, such as praise, promotions, or monetary benefits, as a means of control.

Powerholder

An individual or entity that possesses control and authority within a specific context, enabling them to influence outcomes.

Credible

Deserving of trust or belief; convincing or believable.

Milgram

Refers to a series of psychological experiments conducted by Stanley Milgram, which demonstrated the willingness of participants to obey authority figures, even to the point of inflicting harm on others.