On January 1, 20X7 Thesante Metals Ltd Issued a $100,000 $\begin{array} { lrr } & \text { Interest expense } & \text { Interest payable } \\\end{array}$

question 159

Multiple Choice

On January 1, 20X7 Thesante Metals Ltd issued a $100,000, 6%, 5-year bond for $91,889 to yield 8%. Interest is payable semi-annually. The interest expense and interest payable for the first year are closest to:
$\begin{array} { lrr } & \text { Interest expense } & \text { Interest payable } \\\end{array}$
a) $\begin{array} { lrr } && \$ 3,675 &&&&& \$ 3,000 \\\end{array}$
b) $\begin{array} { lrr } && \$ 7351 &&&&& \$ 6,000 \\\end{array}$
c) $\begin{array} { lrr } && \$ 7,418 &&&& \$ 6,000 \\\end{array}$
d) $\begin{array} { lrr } && \$ 7,351 &&&& \$ 8,000 \\\end{array}$

Understand basic financial arithmetic involving percentages and calculating proportions.

Comprehend principles related to leasing, renting, and homeownership, including understanding lease agreements.

Grasp the financial parameters involved in real estate investment, including equity, mortgage mechanics, and interest calculations.

Understand the importance and function of insurance and tax payments in homeownership.

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Arranged

Organized or planned in a specific order or manner.

Rows

Horizontal lines or arrangements, particularly in tables, spreadsheets, or seating configurations, used to organize data, objects, or individuals.

Columns

Structural elements in architecture that transmit the weight of the structure above to other structural elements below, or in the context of documents and tables, vertical divisions of data or text.

Protected

Secured against danger or harm, often referring to safeguarding information, rights, or physical well-being.