If the Interest Rate on a Note Is 12

question 184

Multiple Choice

If the interest rate on a note is 12.5% and the principal was $50,000,what is the maturity value of the note,if the term of the note is 7 months? (Round to the nearest dollar.)

• A)$50,000
• B)$53,646
• C)$56,250
• D)$57,230

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Definitions:

Hardiness

A personality trait characterized by resilience and the ability to endure stressful situations.

Consideration

The act of thinking carefully about something, especially when making decisions or forming opinions.

Commitment

A psychological state or an act of dedicating oneself to a cause, activity, or relationship, often implying a long-term engagement.

Control

The power to influence or direct people's behavior or the course of events.