If Nate Takes Out a $5,000 Loan for One Year

question 29

Multiple Choice

If Nate takes out a $5,000 loan for one year at 10 percent annual interest,the principal is:

• A)$5,000.
• B)$5,500.
• C)$500.
• D)Cannot be calculated without more information.

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Definitions:

Monthly Sales

The total revenue generated from sales activities in one calendar month, often used to track business performance.

Net Operating Income

A company's revenue minus its operating expenses, not including taxes and interest, reflecting the profit generated from regular business operations.

Fixed Expenses

Costs that remain constant for a period of time irrespective of the level of outputs, like rent, salaries, and insurance premiums.

Operating Results

The financial outcomes of a company's business activities, including revenue, expenses, and profit, over a certain period.