You Take Out a Loan of $10,000 Today at Simple

question 62

Multiple Choice

You take out a loan of $10,000 today at simple interest at r = 15%.You make the following payments: $100 in two months,$8000 in four months and the balance in 6 months.What is the final balance according to the Declining Balance Method?

• A)$2445.00
• B)$2460.00
• C)$2463.84
• D)$2562.50

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Definitions:

Receiving Payment

The process of collecting money from customers or clients in exchange for goods or services rendered.

Notes Payable

Short-term or long-term liabilities representing amounts owed by a business, documented by a formal promissory note.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods and services purchased on credit.

Note Payable

A written promise to pay a certain amount of money at a future date, often including interest.