What Is the Total Amount of Interest That Will Be

question 10

Multiple Choice

What is the total amount of interest that will be paid on a five-year,$90,000 note payable at 11% simple annual interest?

• A) $1,980
• B) $9,900
• C) $49,500
• D) $139,500

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Definitions:

Accounts Receivable

Amounts owed to a company by its customers for goods or services delivered on credit.

Inventory Days

A financial metric indicating the average number of days a company takes to sell its inventory, reflecting inventory management efficiency.

Net Credit Sales

The total value of sales made on credit, minus returns and allowances, during a specific period.

Average Inventory

A calculation that reflects the average value of inventory over a certain period, often used for financial analysis.