Asked by Kelsey Michalak on Jul 15, 2024
Verified
The bookkeeper for Durham's Garage is trying to allocate to principal and interest a payment that was made to settle a loan. The cheque stub has the note "$3,701.56 for principal and 7 months' interest at 12.5%." What are the principal and interest components of the payment?
Bookkeeper
A person responsible for recording the financial transactions and maintaining the financial records of a business.
Principal
The original sum of money borrowed in a loan, or the amount of the investment itself.
Interest Components
Elements that contribute to the total interest calculation, often including principal, rate, and time.
- Understand thoroughly the calculation and usage of simple interest in varied economic contexts.
- Comprehend the stipulations and provisions of financial agreements regarding the computation of interest.
Verified Answer
BD
Learning Objectives
- Understand thoroughly the calculation and usage of simple interest in varied economic contexts.
- Comprehend the stipulations and provisions of financial agreements regarding the computation of interest.