You Obtain a Loan of $3,000 Based on Simple Interest

question 94

Short Answer

You obtain a loan of $3,000 based on simple interest with an annual interest rate of 12 percent.At the end of the first month,the interest owed on $3,000 is
(a)$30.
(b)$36.
(c)$300.
(d)$360.

---

Definitions:

Journal Entry

A record in accounting that represents a transaction and shows the accounts affected and the amounts.

Sale

A transaction between two parties where the buyer receives goods, services, or assets in exchange for money or other forms of compensation.

Issuing Bonds

The process of a borrower offering bonds to investors as a form of debt securities to raise capital.