A Monthly Interest Rate of 1% Is a Compounded Annual

question 3

Multiple Choice

A monthly interest rate of 1% is a compounded annual rate of :

• A) 12.68%
• B) 10.00%
• C) 14.11%
• D) 6.00%

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Definitions:

Expenses Recorded

The process of documenting and recognizing incurred expenses in the financial records during a specific accounting period.

Journal Entries

A record of financial transactions in accounting that includes details like the date of the transaction, amounts involved, accounts affected, and a brief description.

Incurred Expense

An expense that a company has recognized on its books, representing a cost that has been encountered in the operation of the business.