A company issues a 60-day,12% note for $16,000.What is the principal amount of the note? (Round your answer to the nearest dollar.)
A) $17,920
B) $16,000
C) $15,680
D) $16,320

Question

Quizplus · Accepted Answer

The principal amount of the note is the amount that is being borrowed or lent, in this case $16,000. The other answer options are either too high or too low and do not accurately represent the principal amount of the note.

A Company Issues a 60-Day,12% Note for $16,000