Compute the Simple Interest Earned on a 1-Year $200 Deposit

question 52

Multiple Choice

Compute the simple interest earned on a 1-year $200 deposit that earns 6% per year.

• A) $6
• B) $60
• C) $120
• D) $12
• E) $200

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Definitions:

Recorded

The action of documenting financial transactions in accounting records to keep an accurate and organized track of a company's financial activities and position.

Cash Received

The total amount of money, including cash, checks, and electronic transfers, that is received by a business during a specified period.

Accounting

The information system that identifies, records, and communicates the economic events of an organization to interested users.