Chana Made a $75,000 Interest- Free Loan to Her Son

question 793

Multiple Choice

Chana made a $75,000 interest- free loan to her son, Trey, who used the money to retire a mortgage on his personal residence. Trey's only source of income was salary of $50,000 and $940 interest income on a savings account. The relevant Federal interest rate was 5% and the loan was outstanding all year long. What amount must Chana include as interest income as a result of this transaction?

• A) $2,810
• B) $0
• C) $3,750
• D) $940

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Definitions:

Meiosis I

The first division of meiosis, in which homologous chromosomes separate, leading to cells that are haploid.

Haploid

A cell or nucleus having a single set of unpaired chromosomes, characteristic of gametes.

Diploid

Having two complete sets of chromosomes, one from each parent.

Visual

Refers to elements that are perceptible by the eye, used in various media and presentations to enhance understanding and engagement.