At What Simple Annual Interest Rate Would $835 Grow to $900

question 65

Multiple Choice

At what simple annual interest rate would $835 grow to $900 in 5 months?

• A) 16.7%
• B) 4.5%
• C) 7.8%
• D) 18.7%
• E) 17.3%

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Definitions:

Cash Sales

Transactions where goods or services are exchanged immediately for cash payment.

Normal Credit Balance

The expected balance on the credit side of an account, based on its accounting function (e.g., liabilities, revenues, and equity accounts).

Accounts Receivable

tracks money owed to a business by customers who have purchased goods or services on credit, representing a line of credit extended by the business and due within a short period.

Sales

The transactions involving the exchange of goods or services for money or other compensation.