When Interest Is Calculated for Periods Shorter Than a Year,the

question 199

Multiple Choice

When interest is calculated for periods shorter than a year,the formula to calculate interest is:

• A)I = P × R × T,where I = interest calculated,P = principal,R = annual interest rate,and T = number of months.
• B)I = P × R × T,where I = interest calculated,P = principal,R = annual interest rate,and T = (number of months ÷ 12).
• C)I = P × R × T,where I = interest calculated,P = principal,R = monthly interest rate,and T = (number of months ÷ 12).
• D)I = (MV − P)/T,where I = interest calculated,MV = maturity value,P = principal and T = number of months.

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Definitions:

Division Revenues

The total income generated from the sales of goods or services by a specific division or segment of a larger company.

Profit Centers

Divisions or branches of a company that are directly responsible for generating its profits, tracked separately to evaluate performance.

Discretion

The ability or authority to make decisions and choices based on one's own judgment.

Corporate Executives

Senior management or high-level officers in a corporation who are responsible for making company-wide decisions.