You Take Out a Loan of $A at a Simple

question 51

Multiple Choice

You take out a loan of $A at a simple interest rate of r for n-days (n > 0) .Under exact interest,you have to pay back $8230 at the end of n-days.If ordinary interest is used instead,what would be the amount to be paid back at the end of n-days?

• A)$8,230
• B)More than $8230
• C)Less than $8230
• D)Need more information to determine

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Definitions:

Available-for-sale Security

A debt or equity security not classified as a held-to-maturity or trading security, which can be sold in the short term for capital gains.

Net Income

The total profit of a company after all expenses and taxes have been subtracted from total revenue.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities.

Accounting Error

A mistake in the financial records of an entity, which could be due to mathematical mistakes, misinterpretations, or oversight in the accounting processes.