Asked by shaianne roache on Jul 06, 2024
Verified
The interest rate specified on any note is for a
A) day.
B) month.
C) week.
D) year.
Interest Rate
The fee a lender imposes on a borrower for asset usage, represented as a proportion of the principal amount.
Note
An instrument of debt that specifies the terms under which monies are borrowed and must be repaid, including interest rates and due date.
- Determine the suitable interest calculation technique for notes receivable.
Verified Answer
EP
eranda pereraJul 09, 2024
Final Answer :
D
Explanation :
The interest rate specified on any note is typically for a year. While interest rates can be expressed in different time periods, such as monthly or daily, the default assumption is that the interest rate specified on a note or loan is for a year unless otherwise stated.
Learning Objectives
- Determine the suitable interest calculation technique for notes receivable.
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