After 7 Months at an Interest Rate of 13%, an Investment

question 194

Multiple Choice

After 7 months at an interest rate of 13%, an investment matured today at a value of $80,000. How much of the $80,000 is interest?

• A) $12,065
• B) $10,400
• C) $6,067
• D) $7,436
• E) $5,639

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Definitions:

Statement of Cash Flows

A statement that outlines the influence of balance sheet and income modifications on the status of cash and cash equivalents, divided by the categories of operational, investment, and financial activities.

Financing Section

Part of the cash flow statement that shows cash flows related to borrowing, repaying debts, and equity transactions.

Common Stock

A type of ownership in a corporation that entitles holders to vote on corporate matters and receive dividends.

Cash Increase

The rise in the amount of cash and cash equivalents that a company has during a particular period, often resulting from operational activities, financing, or investments.