Ramos Company has a 90-day note that carries an annual interest rate of 8%. If the amount of the total interest on the note is equal to $700, what is the note's principal? a. $8,750 b. $35,000 c. $50,400 d. $22,400

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Ramos Company has a 90-day note that carries an annual interest
rate of 8%. If the amount of the total interest on the note is equal to
$700, what is the note's principal?
a. $8,750
b. $35,000
c. $50,400
d. $22,400
Transcribed Image Text:Ramos Company has a 90-day note that carries an annual interest rate of 8%. If the amount of the total interest on the note is equal to $700, what is the note's principal? a. $8,750 b. $35,000 c. $50,400 d. $22,400
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