The Total Assets and the Total Liabilities of Samantha Financial

question 49

Multiple Choice

The total assets and the total liabilities of Samantha Financial Services are shown below.There were no capital contributions and withdrawals during the year. $$\begin{array} { | l | l | r | } \hline & \text { Assets } & \text { Liabilities } \\\hline \text { Beginning of year } & \$ 405,000 & \$ 275,000 \\\hline \text { End of year } & 445,000 & 305,000 \\\hline\end{array}$$ What was the amount of profit for the year?

• A)$30,000
• B)$70,000
• C)$40,000
• D)$10,000

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Definitions:

Amortization Period

The total time period over which a loan or mortgage is scheduled to be repaid through periodic payments.

Compounded Annually

Interest on an investment that is calculated once per year and added to the principal sum.

Monthly Payment

A fixed amount of money paid at regular monthly intervals for a service or to repay a loan.

Amortization Period

The length of time it takes to pay off a debt or loan in full through regular payments.