Calculate the Payment Float Given the Following Information

question 117

Multiple Choice

Calculate the payment float given the following information:

• A)$110,000
• B)$70,000
• C)$90,000
• D)$80,000

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Definitions:

Compounded Monthly

Refers to interest on a loan or investment calculated monthly, adding to the principal sum so that each successive calculation includes the previous month's interest.

Semiannually Compounded

Interest on an investment or loan calculated twice a year.

Compounded Annually

Interest calculation method where interest is calculated on the initial principal as well as the interest accumulated over previous periods, applied once per year.

Annual Sales

The total revenue generated from sales activities over the course of one year.