Accounting: Tools for Business Decision Making, 5th Edition

Published by Wiley
ISBN 10: 1118128168
ISBN 13: 978-1-11812-816-9

Appendix D - Time Value of Money - Brief Exercises: BED-2

Answer

Interest earned is $4800.

Work Step by Step

interest = principal x rate x time Substiture the given values to compute interest earned. $Interest=8000\times0.05\times12=4800$
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