Picard Orchards Requires a R100,000 Annual Loan in Order to Pay

Multiple Choice

Picard Orchards requires a R100,000 annual loan in order to pay laborers to tend and harvest its fruit crop.Picard borrows on a discount interest basis at a simple annual rate of 11 percent.If Picard must actually receive R100,000 net proceeds to finance its crop, then what must be the face value of the note?

A) R111,000
B) R100,000
C) R112,360
D) R89,000
E) R108,840