How Much Interest Will Accrue on a $20,000 Face Value

question 51

Multiple Choice

How much interest will accrue on a $20,000 face value, 120-day note that bears interest at 9 percent a year?

• A) $600
• B) $900
• C) $1,800
• D) $3,600 20000 x 120/360 x .09 = 600.

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Definitions:

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A heightened state of physiological activity and alertness, often associated with emotions such as excitement, anxiety, or fear.

Sympathetic Nervous System

A part of the autonomic nervous system that activates what is often termed the fight or flight response, preparing the body to react to stressful situations.

Increases Respiration

A physiological condition where the rate and depth of breathing rise, often in response to exercise, stress, or another stimuli.

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