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:

Mini-Dow Futures

Futures contracts based on the Dow Jones Industrial Average but with a smaller contract size, allowing for more accessible investment.

Listed Price

The official price of a commodity, security, or asset that is publicly quoted on an exchange.

Futures Contract

Financial derivatives that obligate the buyer to purchase, and the seller to sell, a specified asset at a predetermined future date and price.

Futures Contracts

Agreements to buy or sell an asset at a future date at a price agreed upon today.