If the Interest Rate on a Note Is 12% and the Principal

question 1

Multiple Choice

If the interest rate on a note is 12% and the principal was $60,000,what is the interest expense for the 8 month note? (Round your final answer to the nearest dollar. )

• A)$3,600
• B)$4,800
• C)$7,200
• D)$7,800

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Definitions:

Distributors

Intermediaries that buy products from manufacturers or wholesalers and sell them to retailers or directly to consumers.

Commission

A fee paid to an agent or employee for facilitating a sale or transaction.

Demand-oriented

A strategy or approach focused on meeting the needs and desires of consumers to drive product development and marketing efforts.

Expected Customer Tastes

Anticipations or predictions about the preferences and desires of customers in relation to products or services in the future.