The Total Interest on a 5 Year 5 $\times$ 0052 $\times$ 5 = $2,600

question 30

True/False

The total interest on a 5 year 5.2% loan with a principal of $10,000 is 10,000 $\times$ 0.052 $\times$ 5 = $2,600.

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Definitions:

Income-sharing Ratio

The pre-agreed proportion in which partners or stakeholders share the generated income or losses.

LLP

A legal structure for a business that provides the owners with limited liability protection, typically used by professional services firms.

Net Income

The total profit of a company after all expenses and taxes have been deducted from revenues.

Capital Account Balance

The net result of public and private international investments flowing in and out of a country, representing changes in national ownership of assets.