Use the Information Provided to Calculate the Missing Cash Received

question 186

Essay

Use the information provided to calculate the missing cash received for interest for the period.
$\begin{array}{|l|lcc|} \hline \text {Interest receivable, beginning-year\ldots \ldots \ldots \ldots \ldots \ldots \ldots } & \$800 \\ \text { Interest revenue.\ldots \ldots \ldots \ldots \ldots \ldots \ldots } &12,600\\ \hline\text { Interest receivable, year-end.\ldots \ldots \ldots \ldots \ldots \ldots \ldots} &1,200\\\hline \text { Cash received for interest.\ldots \ldots \ldots \ldots \ldots \ldots \ldots } &\\\hline\\\hline\end{array}$

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Definitions:

Compounded Annually

Interest calculated on the initial principal and the accumulated interest from the past year added together once per year.

Term Deposit

A type of bank deposit that has a fixed term and typically offers a higher interest rate than a regular savings account.

Interest Rate

The percentage of a sum of money charged for its use.

Original Principal

The initial amount of money borrowed or invested before any interest or earnings are applied.