INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 214

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-The costs of investing in a variable annuity is typically [higher | lower] than investing in mutual funds.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Interest Expense

The amount of interest payable on any borrowed funds.

Notes Payable

A written promise to pay a certain amount of money, usually bearing interest, by a specific date; it is a liability on the balance sheet.

Interest Payable

A liability account shown on a company’s balance sheet which represents the amount of interest expense that has accrued but has not been paid as of the balance sheet date.

Interest Expense

The financial cost of borrowing money that an entity sustains over time.