The Annual Interest Expense on a $50,000, 15-Year, 10 Percent

question 55

Multiple Choice

The annual interest expense on a $50,000, 15-year, 10 percent bond issued for $45,650 plus accrued interest 6 months after authorization, assuming straight-line amortization, would be

• A) $4,975.
• B) $5,000.
• C) $5,025.
• D) $5,472.

---

Definitions:

Population Standard Deviation

A measure of the dispersion or spread of all values in a population from the population mean.

Mean Salary

The average salary calculated by summing all salaries and dividing by the number of salaries.

Population Standard Deviation

A measure of the spread of a set of values in a population, giving insight into the variability within the entire population.

Sample Size

The number of observations or elements selected from a population to be included in a sample.