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

question 73

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 ________.For computation of interest,use a 365-day year.(Round your final answer to the nearest dollar. )

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

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Definitions:

Straight-Line Method

A method of calculating depreciation for accounting purposes where an asset's cost is evenly distributed over its useful life.