The Amount of Simple Interest Is Determined by Multiplying the Amount

question 80

Multiple Choice

The amount of simple interest is determined by multiplying the amount in savings by the:

• A)annual interest rate.
• B)time period.
• C)number of months in a year.
• D)time period and number of months.
• E)annual interest rate and the time period.

---

Definitions:

Deferred Revenue

Money received for goods or services which have not yet been delivered or performed; recognized as a liability until the revenue earning criteria are met.

Earned

Income or revenue that has been realized or generated, typically through the sale of goods or services.

Collected

The process of receiving or bringing in payments or money owed to an individual or business.

Interest Payable

This is the amount of interest expense that has accrued but not yet been paid by the company.