Assuming a 360-Day Year, the Interest Charged by the Bank

question 155

Multiple Choice

Assuming a 360-day year, the interest charged by the bank, at the rate of 9%, on a 90-day, discounted note payable for $100,000 is

• A) $9,000
• B) $2,250
• C) $750
• D) $1,000

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Definitions:

Fair Value

Fair value is the estimated market price of an asset or liability, reflecting its current value in an orderly transaction between willing market participants.

Vested Options

Stock options granted to an employee that the employee has the right to exercise, contingent upon fulfilling certain conditions such as employment duration.

Income

The financial gain received by an individual or a business in exchange for providing goods, rendering services, or through investing capital.