The difference between the amount received from issuing anote payable and the amount repaid is referred to as: Interest Principle

Finance Mar 26, 2021

The difference between the amount received from issuing anote payable and the amount repaid is referred to as:

1. Interest
2. Principle.
3. Face value.
4. Cash
5. Accounts payable

Expert Solution

Answer:

A .

Step-by-Step explanation

Notes payable is a type of promissory note. In this agreement, a person borrows money and promises to make payment of the principal amount with interest after a predetermined period of time. The difference between the received amount and repaid amount is known as interest.

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