If Erik Lends Dan $5,000 and Dan Agrees to Repay

question 75

Multiple Choice

If Erik lends Dan $5,000 and Dan agrees to repay Erik $6,000 in 1 year's time, the $5,000 is the

• A)interest rate.
• B)compounding amount.
• C)principal.
• D)real return.

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Definitions:

Medicare

Medicare is a federal health insurance program in the United States for people aged 65 and older, as well as for some younger people with disabilities.

Federal Withholding

Taxes that an employer withholds from an employee's salary or wages, paid directly to the government as prepayment of the employee's tax liability.

Sales Salaries

Expenses associated with paying the salaries of sales personnel, typically classified under operating expenses in the income statement.

Medical Insurance

A type of insurance coverage that pays for an individual's medical and surgical expenses incurred from illness or injury, or reimburses the insured for expenses incurred from such incidents.