If a firm borrows $9,000 for one year from another entity using a non-interest-bearing note, what amount does the borrower repay on the due date?
A)More than $9,000
B)$9,000
C)Less than $9,000
D)Unable to determine without the implicit interest rate

Question

Quizplus · Accepted Answer

Since the note is non-interest-bearing, the borrower does not have to pay any interest on the borrowed amount. Therefore, the borrower only needs to repay the principal amount of $9,000 on the due date.

If a Firm Borrows $9,000 for One Year from Another