If You Have an Account with a 21

question 132

Multiple Choice

If you have an account with a 21.5% annual percentage rate where interest is compounded quarterly, what is the effective annual rate of interest?

• A) 23.75%
• B) 23.3%
• C) 21.5%
• D) none of the above

---

Definitions:

Accounts Payable

The short-term liabilities or obligations a company owes to its suppliers or creditors for goods and services received.

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation, calculated as total assets minus total liabilities.

Accounts Payable

Amounts a company owes to suppliers or creditors for goods and services received but not yet paid for, recorded as a liability.

Supplies

Items that are used in the day-to-day operation of a business but do not directly relate to the goods or services sold.