How Much Interest Could You Earn Over 7 Months on an Investment

question 235

Multiple Choice

How much interest could you earn over 7 months on an investment of $49,000 at 14.75%?

• A) $28,583
• B) $422
• C) $5,059
• D) $508
• E) $4216

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Definitions:

Accounting Period

A specific time span for which financial records are kept and financial statements are prepared, usually a year or quarter.

Beginning Inventory

The value of all the goods held by a company at the start of an accounting period, before any purchases or sales are made.

Lower Of Cost

Refers to a valuation principle that directs inventory and other assets to be recorded at the lower of either the original cost or the current market value.