A company issues a 140-day,14% note for $18,000.What is the principal amount of the note? (Round your answer to the nearest dollar. )

Question

Quizplus · Accepted Answer

The principal amount of the note is the amount borrowed, which is $18,000. This is the amount that will be repaid at the end of the 140 days, plus the interest accrued at a rate of 14%. Therefore, the principal amount of the note is $18,000.

A Company Issues a 140-Day,14% Note for $18,000