Flores Company Borrowed $10,000 at 10% Interest for 5 Years

Multiple Choice

Flores Company borrowed $10,000 at 10% interest for 5 years. Which statement is true?

A) Regardless of when the note is repaid, total interest over the loan period is the same.
B) Interest expense is the same regardless of the compounding periods.
C) The amount to be repaid is the same regardless of whether the principal is repaid $2,000 per year, or as a sum at the end of five years.
D) Interest is less if simple interest is used than if compound interest is used.