ABC Company Signed a 5-Year Note Payable for $80,000 at 9

question 31

Multiple Choice

ABC Company signed a 5-year note payable for $80,000 at 9% annual interest.What is the interest expense for December 31,2012 if the note was signed on May 1,2012?

• A) $7,200
• B) $4,800
• C) $2,400
• D) $36,000

---

Definitions:

Corporate Angels

Wealthy companies that invest in small startups or entrepreneurs, often for strategic purposes as well as financial return.

Venture

An undertaking that is risky or daring but may lead to profit or success in a business context.

Rate of Return

The gain or loss of an investment over a specified period, expressed as a percentage of the investment’s cost.

Business Executives

Individuals who hold senior managerial positions within a company, responsible for strategic decision-making and leading the organization.