# Sunlight Growers borrows \$250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank? A. \$250,000 B. \$10,000 C. \$252,500 D. \$2,500

FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685

#### Solutions

Chapter
Section
FindFindarrow_forward

### Principles of Accounting Volume 1

19th Edition
OpenStax
Publisher: OpenStax College
ISBN: 9781947172685
Chapter 12, Problem 14MC
Textbook Problem
1 views

## Sunlight Growers borrows \$250,000 from a bank at a 4% annual interest rate. The loan is due in three months. At the end of the three months, the company pays the amount due in full. How much did the company remit to the bank?A. \$250,000B. \$10,000C. \$252,500D. \$2,500

To determine

Concept introduction:

Simple interest:

Simple interest is the amount of interest paid on the principal amount using a fixed interest rate. The formula to calculate the Simple interest is as follows:

Simple Interest = Principal amount x Interest rate x Period

To choose:

The amount that company remit to the bank.

### Explanation of Solution

The amount that company remits to the bank is calculated as follows:

Principal amount of the loan = \$250,000

Rate of interest= 4%

### Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

#### The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started

Find more solutions based on key concepts
Label the blanks in the column heads as either Debit or Credit.

College Accounting (Book Only): A Career Approach

What are cash equivalents?

College Accounting, Chapters 1-27 (New in Accounting from Heintz and Parry)

Why is productivity important?

Principles of Economics (MindTap Course List)

Bedrock Company has 70 million in debt and 30 million in equity. The debt matures in 1 year and has a 10% inter...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

What are the major forces in consumerism today?

Foundations of Business (MindTap Course List)