What Is the Time Period of a Loan for $3,000

question 5

Multiple Choice

What is the time period of a loan for $3,000, at 10% ordinary interest, if the amount of interest is $145.00? (Round any fraction to the next higher day)

• A) 174 days
• B) 176 days
• C) 177 days
• D) 178 days

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Definitions:

Accrued Liabilities

Liabilities that have been incurred, but have not yet been paid or recorded through a standard accounting transaction.

Financing Activities

Transactions and events where a business raises funds to finance its operations and expansions, often through borrowing or issuing equity.

Net Cash Provided

The amount of money generated and available from a company's operating activities after all cash expenses have been paid.

Cash Dividends

Payments made by a corporation to its shareholder members, distributing earnings in the form of cash.