The Total Amount of Interest Calculated Annually on a $7,000

question 103

Multiple Choice

The total amount of interest calculated annually on a $7,000 promissory note payable for 3 years at 12% that is not Compounded is

• A) $280
• B) $840
• C) $2,520
• D) $8,260

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Definitions:

Land Acquired

The process of purchasing land to be used for business operations or investment, which is recorded as a fixed asset on the balance sheet.

Investments

Assets purchased with the goal of generating income or appreciating in value over time.

Consultant's Fee

The amount charged by a consultant for their professional advice or services.

Computer Equipment

Tangible assets related to computers and technology used in the operational activities of a business, such as servers, desktops, and peripherals.