If the Amount Payable in Two Years Is $2,420 for a Simple

question 26

Multiple Choice

If the amount payable in two years is $2,420 for a simple loan at 10 percent interest,the loan amount is

• A)$1,000.
• B)$1,210.
• C)$2,000.
• D)$2,200.

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Definitions:

Investment Opportunities

Investment opportunities refer to avenues where individuals or entities can invest their resources with the expectation of generating a future financial return.

Float Motive

The reason businesses hold onto cash for transactional purposes, allowing them to meet short-term obligations without liquidating investments.

Cash Concentration

The process of consolidating cash from multiple accounts into a single account, aiming to improve the efficiency of cash management and reduce transaction costs.

Centralized Bank Account

A single bank account used by a company to manage and control all payments and receipts, simplifying cash management.