Use the Present Value and Future Value Tables Included in Appendix

Use the present value and future value tables included in Appendix 8 and on the textbook companion website.
-An $18,000, 8 percent (payable annually) , one-year note is accepted by the bank on April 1. If the note is prematurely repaid on November 1 of the same year (without penalty) , how much interest is paid?

A) $700
B) $840
C) $980
D) $1,440

Correct Answer:

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