If the Amount Payable in Two Years Is $2,420 for a Simple

question 26

Multiple Choice

If the amount payable in two years is $2,420 for a simple loan at 10 percent interest,the loan amount is

• A)$1,000.
• B)$1,210.
• C)$2,000.
• D)$2,200.

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Definitions:

Ledger

A group of accounts for a business.

Price And Quantity Variances

The difference between the actual and expected costs, analyzed through the perspectives of price paid and the quantity used.

Standard Costs

Standard costs are the expected costs of manufacturing a product under normal conditions, including direct labor, direct materials, and factory overhead.

Standard Costs

Predetermined or estimated costs used for planning and control purposes in budgeting and cost management.