What Is the Rate of Interest on a Note for $3,600

question 18

Multiple Choice

What is the rate of interest on a note for $3,600, due in 180 days, if the total interest to be paid is $400?

• A) 25%
• B) 33%
• C) 22%
• D) 11%

Comprehend the role of merchandise inventory in accounting and its normal balance.

Know the terms related to shipping and their impact on freight costs and title passage.

Recognize the documentation used in the purchasing process and their purposes.

Understand the effects of buying and returning merchandise on financial statements.

---

Definitions:

Utility Function

A mathematical representation that assigns numerical values to different bundles of goods, showing the satisfaction or utility those goods generate for a consumer.

Equivalent Variation

An economic measure of the difference in income that a consumer would require to reach the same level of utility before and after a price change.

Income

The sum of funds earned, often periodically, from employment or investment returns.

Demand Function

A mathematical equation that describes the relationship between the quantity of a good demanded and its price, along with other factors like income and price of related goods.