The Solution to This Problem Requires Time Value of Money

question 123

Multiple Choice

The solution to this problem requires time value of money calculations.Reference to Tables 9-1 through 9-4 in the text is necessary to complete the calculations.
The total amount of interest compounded quarterly on a $1,500 note payable for 1 year at 12% is

• A)$180.00
• B)$187.50
• C)$189.00
• D)$ 45.00

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Definitions:

Goldsmith

Traditionally, an artisan who crafts objects out of gold, but the term can also refer to a person or establishment dealing in gold and gold products.

Silversmith

An artisan specializing in the creation and manipulation of silver into functional items, jewelry, or art.

Restrictive Indorsement

An indorsement in which words have been added to the signature of the indorser that specify the purpose of the indorsement or the use to be made of the commercial paper, such as “for deposit only.”