A 1-Year,$30,000,10 Percent Note Is Signed on May 1

question 106

Multiple Choice

A 1-year,$30,000,10 percent note is signed on May 1.If the note is repaid on October 1 of the same year,how much interest expense is incurred?

• A)$2,000
• B)$625
• C)$1,250
• D)$600

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Definitions:

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A property interest that lasts for the life of a specific individual, after which the property reverts to the owner or moves to a different designated party.