Maxwell Gardens requires a $100,000 annual loan in order to pay laborers to tend and harvest its organic vegetable crop. Maxwell borrows on a discount interest basis at a nominal annual rate of 11 percent. If Maxwell must actually receive $100,000 net proceeds to finance its crop, then what must be the face value of the note?
a. $111,000
b. $100,000
c. $112,360
d. $89,000
e. $108,840
c
You might also like to view...
Which of the following statements is incorrect?
A. Capital budgeting focuses on short-term planning. B. Capital budgeting involves decisions as whether to buy or lease equipment. C. Cash outflows for capital budgeting will appear on the cash budget. D. Capital budgeting affects the master budget because it considers what assets a company should have and use when achieving its budgets.
One objective of preventive law is to arrange business plans and methods to increase profits by ________.
A. prioritizing the interests of corporate stockholders over the interests of other stakeholders B. reaching business goals through enforceable contracts while avoiding government prohibitions C. honoring legal obligations while avoiding ethical obligations D. strictly adhering to the socioeconomic view of the social responsibility of business
On January 1, 2016, Digger purchased some equipment for $29,600. The anticipated life of the equipment was five years and residual value was estimated to be $4,100. The machine was expected to produce 600,000 units. In January of 2016, 35,000 units were produced and production was doubled in February. The company uses the activity depreciation method. What is the amount of depreciation expense
for the month of February? A) $ 637.50 B) $1,487.50 C) $3,453.33 D) $2,975.00
Ways of closing a sale include asking for the order and getting the buyer to make minor choices such as color or size
Indicate whether the statement is true or false